The China Association of Automobile Manufacturers recently issued the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Development of the Industry", explicitly opposing the disorderly "price war" among automobile enterprises. The Ministry of Industry and Information Technology also made it clear that there will be no winners in a "price war", let alone a future, and it will intensify efforts to rectify the "involutionary" competition in the automobile industry.

At the 2025 China Automotive Chongqing Forum, which opened on June 6, several heads of automobile enterprises and industry experts expressed their agreement with the initiative put forward by the China Association of Automobile Manufacturers during an interview with our reporter. They stated that an endless "price war" would harm the healthy and sustainable development of the industry. Automobile enterprises should operate in accordance with the law, compete in an orderly manner, adhere to integrity and innovation, and prioritize quality. By strengthening technological innovation, they should continuously improve product quality and service quality, fulfill social responsibilities, and build a good brand image.

"Moderate price reductions and orderly competition are normal phenomena in the market economy, but an unbounded 'price war' will inevitably squeeze the reasonable profit margins of enterprises, thereby affecting the quality of products and services. In the long run, it is detrimental to both enterprises and consumers," said Wang Xia, President of the Automobile Industry Branch of the China Council for the Promotion of International Trade and President of the Automobile Industry Chamber of Commerce of the China Chamber of International Commerce.

According to incomplete statistics, there were over 200 models of cars that were price-cut in the domestic auto market in 2024, and more than 60 models have already been price-cut in the first four months of 2025. The situation intensified in May, driven by the large-scale and significant price cuts made by leading car companies, with many other car companies following suit. The number of price-cut models reached over a hundred, with the highest price reduction exceeding 50,000 yuan, and even car prices in the 30,000 yuan range appeared. Although price cuts have led to an increase in sales, they have also caused industry profits to decline to a low level of less than 4%.

Wang Xia believes that no matter how market competition evolves, enterprises should adhere to three bottom lines: first, unwaveringly adhere to quality and safety standards, and maintain the bottom line of laws and regulations; second, adhere to honest business practices and the spirit of contract, maintain win-win industrial chain relationships, avoid exaggerated propaganda and demeaning marketing, and uphold the bottom line of business ethics; third, adhere to long-termism, build value highlands through technological innovation and differentiation, refuse to sell below cost price, and maintain the bottom line of sustainable development.

"Changan Automobile firmly opposes vicious competition that lacks moral and legal boundaries," solemnly pledged Zhu Huarong, Chairman of Changan Automobile. No matter how fierce the competition is, Changan Automobile will adhere to its principles: first, to ensure product safety, quality, and service, and never participate in competition in a way that harms user interests; second, to insist on achieving cost reduction through technological progress and management innovation, and to enhance efficiency through group operations and common platform development, creating more value for users with better-experienced products and services; third, to adhere to participating in global market competition in accordance with laws and regulations, and to achieve long-term healthy development of the enterprise and promote industry progress through high-quality products, reliable quality, and attentive services.

Zhang Xinghai, Chairman of Thalys Group, said, "Thalys actively responds to the association's initiative and will continue to increase investment in talent, research and development, production, testing, and other aspects, adhering to the path of technological, product, and service innovation."

"Industry competition is inevitable, and the forms of competition are diverse, but the ultimate goal is to create value for the country and consumers," said Huang Yongqiang, a member of the Executive Committee of GAC Group and the head of brand marketing. GAC actively responds to the association's initiative, adheres to value innovation, and provides consumers with smarter and safer products, as well as more thoughtful and comprehensive services.

"The competition in the automotive industry is never a sprint, but a marathon," said Duan Jianjun, President and CEO of Beijing Mercedes-Benz Sales Service Co., Ltd. "If a company wants to go far and steadily, it must adhere to the bottom line of value, persist in long-term investment, and continuously improve technology, experience, and value.".

"We believe that with the promotion of relevant departments, self-discipline in the industry, and the efforts of major automobile enterprises to set examples, China's automobile industry will develop better and better," said Zhu Huarong.

"People's Daily" (June 7, 2025, Page 02)

(Responsible editors: Ren Jiahui, Liang Qiuping)