In a move that underscores the evolving dynamics of China’s burgeoning electric vehicle (EV) market, the People’s Daily, a prominent state-run media outlet, has once again weighed in on the ongoing price war. The newspaper’s recent commentary takes aim at the aggressive discounting strategies employed by some automakers, a practice that’s sparking concerns about the long-term health of the industry.
The article specifically criticizes the “price war” phenomenon, noting that recent dramatic price cuts have triggered a wave of anxiety. Following this, both the China Association of Automobile Manufacturers and the Ministry of Industry and Information Technology have voiced their opposition to the chaotic price competition, signaling a commitment to curbing the “self-inflicted” competitive pressures within the sector.
Echoing the sentiment, numerous automotive executives have publicly stressed the importance of prioritizing “value” over “price” in the future. This strategic shift, the article points out, is rooted in fundamental economic principles. As the market matures and consumer preferences evolve, the days of homogenous, demand-driven consumption are fading. Consumers are increasingly eager for personalized, diverse options.
The shift involves moving beyond a narrow focus on price and towards building value, is driven by the desire for better products.
This shift has been brewing for a while. Earlier commentary in the People’s Daily highlighted the transformation from a market where sub-$15,000 domestic gasoline-powered cars struggled to gain traction, to one where $30,000-plus EVs are increasingly in high demand. This turnaround is largely attributed to technological advancements like intelligent driving systems, cutting-edge battery technologies, and smart cockpit features.
The shift indicates that China’s manufacturing sector is presently entering a crucial phase, transitioning from being price-driven to one that is value-driven. With the EV sector developing rapidly, and with global competitors intensely investing in research and development, Chinese automakers, despite their current advantages, cannot afford to rest on their laurels.
The People’s Daily urges automakers to embrace a long-term perspective, to reduce production costs through innovation in technology and management, and to provide consumers with higher-quality, more cost-effective offerings. The piece cautions against prioritizing short-term gains through price wars, or pursuing inflated market capitalization driven by outside investment.
Such strategies, the article suggests, could lead to an unsustainable business model, harming efforts to expanding into foreign markets.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/1694.html
