Core Viewpoint - The automotive industry is experiencing a significant price reduction trend driven by a "sales-first" mentality, which poses risks to normal operations and the stability of the supply chain [2][5][9]. Group 1: Market Dynamics - Recent promotional activities, such as "one-price" sales, have led to intense competition among car manufacturers, with new models being offered at drastically reduced prices [3][4]. - The number of models participating in price reductions has increased significantly, with over 20 models seeing price cuts in just one week at the end of May [5]. - The automotive market is facing high inventory levels, with domestic passenger car inventory reaching 3.5 million units by the end of April, indicating a growing pressure on manufacturers [6][7]. Group 2: Consumer Behavior - Consumers are responding to price cuts with mixed feelings, with some expressing excitement over potential savings while others question the sustainability of such low prices [4][5]. - There is a growing expectation among consumers that prices may continue to decline, leading to concerns about product quality and brand trust [4][5]. Group 3: Industry Challenges - The aggressive price competition is seen as a self-destructive trend, with industry leaders warning that it could lead to reduced profit margins and hinder technological advancements [5][8]. - The automotive industry is under pressure to innovate and shift from a focus on sales volume to a focus on value and quality, as excessive reliance on low prices can damage brand reputation and consumer confidence [9][10]. Group 4: Strategic Shifts - To break the cycle of "sales-first," the industry must prioritize technological innovation and product differentiation to build a sustainable competitive advantage [9][10]. - Companies are encouraged to invest in research and development, with many now allocating 6% to 10% of sales revenue to R&D, although challenges remain in achieving timely returns on these investments [11][12]. - The future of the automotive industry is expected to focus on quality, service, and user experience, moving away from price-driven strategies to create a more sustainable ecosystem [14][15][16].