Core Viewpoint - The Chinese automotive industry is calling for an end to chaotic "price wars" among companies, emphasizing the need for fair competition and sustainable development through technological innovation [1][3][4]. Group 1: Industry Response to Price Wars - The China Automotive Industry Association has issued an initiative against disorderly price wars, stating that there are no winners in such competition [1][10]. - Industry leaders, including Chery and NIO, agree that price wars lead to negative consequences for suppliers, dealers, and the overall industry, advocating for a focus on technological innovation instead [3][4][10]. - Executives from various companies, such as BYD and Changan, express their commitment to fair competition and the importance of enhancing product quality and service rather than engaging in price wars [7][8][10]. Group 2: Industry Performance and Challenges - In 2024, China's automotive production and sales both exceeded 31 million units, with new energy vehicles (NEVs) surpassing 10 million units for the first time [8]. - Despite record production and sales, the industry's profit margin was only 4.3%, lower than the overall downstream industrial profit margin [8][10]. - The prevalence of over 60 discounted models in the domestic market has led to increased sales but further declines in profit margins for many companies [10][11]. Group 3: Future Directions and Innovations - Industry experts emphasize that the key to China's automotive success lies in innovation rather than low pricing, with a focus on meeting consumer demands through technological advancements [12][14][18]. - Companies are encouraged to adopt a long-term perspective, investing in research and development to enhance competitiveness and avoid the pitfalls of price wars [18][19]. - The government plans to strengthen regulatory measures to maintain a fair market environment and promote high-quality development in the automotive sector [19][20].