Beijing, China – In the face of a fierce price war gripping China’s electric vehicle market, executives from major automakers are offering contrasting perspectives. The core debate, however, centers on the fundamental relationship between price and value.
Speaking on the sidelines of an industry event,
Guangzhou Automobile Group (GAC) Vice General Manager, He Xianqing, articulated a pragmatic view. He quoted a well-known Chinese proverb, essentially stating “you get what you pay for,” which reflects his direct perspective. “In a highly competitive industry like automobiles, the price frequently represents the value.”
He stressed GAC’s commitment to delivering value that surpasses mere price points, focusing on customer experience and lifecycle cost.
Echoing these concerns, Zhang Guofu, Chairman of Beijing Electric Vehicle (BJEV), emphasized the need for a return to the fundamentals of business. “The new energy vehicle (NEV) industry still grapples with profitability,” he observed, highlighting the challenges ahead. “We need to stay true to our core values, rather than taking shortcuts that could lead to disaster. Our objective is not to create cheaper cars or prioritize short-term gains, but to build safer, more reliable vehicles that offer a desirable future,” added Zhang.
Zhang further criticized unsustainable practices, “We must not treat a durable transportation tool as a fleeting consumer product, prioritizing quick profits over quality.” He cautioned that sacrificing quality for lower prices would be a dead end. “Low-end competition is a dead end. Only through innovation and a focus on high-end markets can the industry achieve sustainable growth.”
Zhang raised the question of business ethics: “How far can this industry go if we treat customers as naive, partners as laborers, the public as an audience, and key opinion leaders as mere actors?”
He underscored the high cost of rebuilding trust once it’s lost, a scenario that could lead to a destructive cycle. “As automobiles prepare to become a leading pillar of the national economy, expectations are greater,” said Zhang. “While embracing innovation and adapting to our evolving market dynamics are vital, these should not be excuses for ignoring fundamental principles and adopting reckless growth strategies.” Zhang cautioned that automakers must never forget that customers are the bedrock of their brands.
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