Do You Agree? Chinese EV Executives Sound Alarm on “Involuted” Competition Threatening Safety and Quality Standards

At the 2025 Chongqing International Auto Show, a chorus of voices from China’s automotive executives rose in unison, echoing concerns over the increasingly cutthroat competition plaguing the industry. The prevailing sentiment? A move away from the relentless price wars and a pivot towards sustainable, value-driven strategies.

Xiao Yong, head of marketing at GAC Aion’s sales division, encapsulated the prevailing mood. He emphasized the need to shift the focus from aggressive price cuts to a “battle for superior cost-effectiveness.” This approach, according to Xiao, necessitates prioritizing product quality and safety, followed by leveraging technological advancements and efficient manufacturing to lower costs, ultimately delivering more competitive products to consumers.

Chairman of Seres Group, Zhang Xinghai, highlighted the detrimental effects of this “involutionary” competition, particularly its impact on the supply chain. He warned that the drive to slash prices often puts pressure on suppliers, potentially resulting in compromised component quality and safety standards. This, in turn, weakens the profitability of automakers, hinders innovation investments, and ultimately undermines product integrity and security.

The consensus extends beyond individual firms. Other executives echoed the sentiment, underscoring the broader harm to the entire industry ecosystem. Huang Yongqiang, a board member at GAC Group in charge of brand marketing, advocated for a shift towards innovation, encouraging companies to focus on “innovative technologies, value, and service.”

Echoing this perspective, the president of Mercedes-Benz Sales Company, Duan Jianjun, offered a longer-term view. “The competition in the automotive industry is not a sprint, but a marathon,” he asserted. “To thrive, businesses must uphold their core values, commit to long-term investment, and consistently enhance ‘technology,’ ‘experience,’ and ‘value.'”

Yin Tongyue, Chairman of Chery Holding Group, voiced support for the government’s stance. He noted the Ministry of Industry and Information Technology and the China Association of Automobile Manufacturers’ recent calls to oppose such aggressive competition. Yin described price cuts as a “last resort” and a “quick fix.”

Lantu Motors CEO, Liufang, added that the excessive competition is intensifying, leading to a decline in user experience and fostering “irrational competition.” He advocated for creating positive value through high-level technological innovation to break the cycle of price wars. In essence, he argues, in such a climate, “there are no winners, no future.”

These concerns stem from a clear perspective on long-term sustainability.

Previously, Senior Executive often spoke out against the practice of price wars, highlighting that it sacrifices quality and customer experience. Instead, has emphasized the importance of “rolling value,” focused on increasing the added value of products. His viewpoint mirrors the current industry consensus: long-term success hinges on more than just a low price. In fact, this is “a measure of desperation,” used to stay afloat when there is no other choice. Real, sustainable industry competition focuses on enhancing your own capabilities.