Beijing Automotive Group (BAIC) Chairman Zhang Guofu has added his voice to the chorus of industry leaders cautioning against the escalating price wars within China’s electric vehicle market. Speaking recently, Zhang pulled no punches, highlighting the dangers of prioritizing affordability over quality and long-term sustainability.
Zhang’s comments, delivered with a bluntness often reserved for industry veterans, acknowledged the customer temptation of cut-rate offerings. However, he framed the trend as a dangerous delusion: “We must remember our initial intent and stick to the bottom line.” He criticized sacrificing quality in pursuit of aggressive price competition, stating that “low-end competition is a dead end.”
Zhang went on to emphasize that the industry needs to view the product as an investment on the part of the consumer, and not a cheap product:
“In that pursuit it isn’t about the cheapest car, It’s about creating a future of transit that is worth striving for and trustworthy.”
This sentiment echoes concerns previously voiced by prominent figures in the Chinese auto industry. Others, including Huawei’s Richard Yu and Geely’s Li Shufu, have publicly warned that unsustainable price cutting inevitably compromises vehicle safety and quality, ultimately harming consumers. Similarly, the Vice General Manager of GAC Group, He Xianqing, has previously pointed to the basic economic principle that “you get what you pay for” in a fully competitive market like automobiles.
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