The China Association of Automobile Manufacturers (CAAM) has issued a stern warning amid a booming new energy vehicle (NEV) market. With NEVs accounting for over 40% of new car sales in the Chinese mainland, disorderly price wars are sparking market panic 🚗💥.
On May 23, a major car brand cut prices sharply, triggering a domino effect among competitors. This so-called 'involution-style' competition is creating a vicious cycle that slashes profit margins, disrupts supply chains, and hinders innovation—much like being stuck in a never-ending video game challenge.
CAAM emphasizes that continuous investment is key to sustaining product support and driving innovation. All automakers are urged to engage in fair competition, avoiding below-cost sales, deceptive marketing practices, and any actions that may harm consumer rights or the industry’s stability.
The message is clear: sustainable growth in the NEV sector depends on quality, fairness, and a commitment to innovation. As the sector navigates these challenges, staying true to these principles will be essential for long-term success.
Reference(s):
cgtn.com
