Core Viewpoint - Joint venture car companies are struggling against the rise of domestic brands, leading to a shift towards a "one-price" strategy to regain market share [1][3]. Group 1: Impact of "One-Price" Strategy - Major joint venture brands like FAW-Volkswagen and Toyota have seen a resurgence in sales, with FAW-Volkswagen delivering over 380,000 vehicles in Q1 2025, ranking fifth among traditional car manufacturers [3]. - The "one-price" strategy, primarily applied to family cars priced between 100,000 to 250,000 yuan, has led to a noticeable recovery in sales for many joint venture and luxury brands [3]. - Promotions for traditional fuel vehicles reached 22.1% in March, while luxury vehicles saw promotions at 26.1%, and joint venture fuel vehicles at 21.5%, indicating a trend towards aggressive pricing [3]. Group 2: Effectiveness of Price Competition - Historically, joint venture brands enjoyed high brand equity and consumer loyalty, allowing them to command premium prices. However, this advantage is diminishing due to the rise of domestic brands with improved technology and quality [5]. - Price remains a critical factor in consumer purchasing decisions, and a reduction in price can stimulate demand, especially among price-sensitive consumers [5][7]. - While the "one-price" strategy can attract consumers in the short term, it raises questions about its long-term viability as a competitive strategy [5][8]. Group 3: Long-Term Sustainability of Price Cuts - Continuous price reductions may compress profit margins, impacting research and development investments and overall product quality [8]. - Relying on price cuts could alter consumer perceptions of brands like Volkswagen and Toyota, potentially shifting their market positioning from mid-to-high-end to mid-to-low-end [8]. - The automotive market is undergoing significant changes with the rise of electric vehicles and smart technology, necessitating joint venture companies to innovate and adapt to maintain competitiveness [10]. Group 4: Need for Innovation - Joint venture companies must invest in research and development for electric vehicles and explore advancements in smart connectivity to meet evolving consumer demands [10]. - Enhancing user experience through improved after-sales service and customer relationship management is essential for retaining market relevance [10].