Core Viewpoint - The automotive industry is entering a "zero-sum game" phase, where market growth has stagnated, leading to intensified competition among players for market share rather than overall market expansion [3][4][8]. Group 1: Automotive Industry Dynamics - The automotive industry ranks sixth globally in terms of market size, valued between $2.5 trillion and $3 trillion, with a significant indirect market impact exceeding $10 trillion due to its supply chain effects [3]. - The shift to a "zero-sum game" indicates that any growth for one player results in a loss for another, fundamentally altering the competitive landscape from collaborative growth to survival-driven strategies [3][4]. - Investment banks are withdrawing from the automotive sector not due to a lack of confidence in cars as products, but because traditional investment models are less likely to yield returns in this competitive environment [4]. Group 2: Lack of Innovative Products - In the past five years, there have been no truly "phenomenal" consumer products that create new markets; the only notable innovation is LABUBU in the toy sector, which expanded market boundaries rather than competing for existing shares [6][8]. - The automotive sector's "new energy" revolution has not generated new demand but has merely replaced traditional fuel vehicles, leading to fierce competition for existing market shares [8][9]. - The market has transitioned from an "incremental market" to a "stock market," where overall growth has stalled, resulting in a zero-sum competition where consumer choices directly impact brand viability [8][9]. Group 3: Global Market Opportunities and Risks - China has become the world's largest automotive exporter, with strong export performance expected to drive continued growth in the automotive industry, while domestic sales stabilize around 25 million units annually [11]. - Different global markets present varying levels of opportunity and risk; for instance, the Russian market is highly volatile, while North America imposes significant tariffs that hinder Chinese automotive exports [11][12]. - The EU has introduced high anti-subsidy tariffs on Chinese electric vehicles, complicating export strategies for Chinese manufacturers [12]. Group 4: Strategic Market Entry - The fundamental difference in consumer behavior between China and the U.S. lies in consumption structure; the U.S. market is characterized by high-value, discretionary spending, making it a strategic target for high-end brands despite high tariffs [15][16]. - Companies are encouraged to adopt flexible strategies and consider local partnerships or production to navigate the complexities of entering the U.S. market [15][16].