Wang Xia: Continuous price wars not only cause serious internal injuries to car companies, but also make consumers experience aesthetic fatigue. They no longer buy into price wars.

At the opening ceremony of the 2026 China Auto Chongqing Forum, Wang Xia, President of the Automobile Industry Committee of the China International Trade Promotion Committee and President of the Automobile Industry Association of the China Council for the Promotion of International Trade, gave a speech. Regarding the topic of price wars, he stated that in the first 5 months of this year, over a hundred new cars were launched in the domestic market, but sales did not increase accordingly. Passenger car retail sales nationwide reached 7.1 million, a nearly 20% decrease compared to the same period last year. In the first quarter of this year, the profit margin of China's auto industry was 3.2%, significantly lower than the average profit margin of the national industrial enterprises; during the same period, the operating income of the auto industry experienced a slight decline year-on-year. He pointed out that sales, revenue, and profits are all under pressure, and these cold numbers signify a harsh reality: the marginal effects of price wars are accelerating decline. After several years of price wars, not only have companies suffered internal injuries, but consumers have also become fatigued. It is important to realize that sales without profit support are just empty number games. And profits sustained by subsidies are ultimately unsustainable. "Great industrial revolutions should bring about leaps in industry development; great technological innovations should lead to the prosperity of enterprises. But without long-term profits, how can industrial revolution be achieved? What is the significance of technological change?" he said. Market research data show that consumers no longer buy into price wars, with more people holding a negative attitude than a positive one, forcing companies to change their strategies. He cited data indicating that in 2025, sales of new energy vehicles priced over 300,000 RMB increased by 47.2% year-on-year, far exceeding the overall market growth of 12.3%. Since the beginning of this year, nearly 20 brands have actively raised prices or made adjustments to terminal discounts, signaling a shift from who can lower prices the most to who can survive the longest. "Although some positive signals may be weak, the direction is correct. We need to use broad strategic consensus to push the industry onto a rational path of value regression."