Competitive Advantage

Huawei’s Yu Chengdong and other Chinese automotive industry leaders warn against price wars, emphasizing the value of quality and innovation over unsustainable low prices. They advocate for value competition, prioritizing product features, customer experience, and ethical business practices. This stance reflects concerns over declining quality, compromised service, and the long-term risks associated with relentless price cutting in the automotive sector.

Xiaomi executive Lu Weibing expressed confidence in the SU7 electric vehicle’s market position, citing strong demand and robust sales despite competition. He attributed production constraints to lengthy delivery times. Weibing dismissed concerns about the upcoming YU7 impacting SU7 sales and highlighted shared architecture benefits, emphasizing the SU7’s competitive advantages, with rivals lagging far behind in sales.