During the Bosch China 2024 press conference on April 18th, Bosch China CEO Xu Daquan discussed the price wars among automakers, stating:
Last year, the average car price in China dropped by 15%. Major automakers are all engaging in price competition, putting pressure on automotive technology suppliers. Some automakers even indicate that they won't pay if suppliers refuse to lower prices.
He further mentioned: Bosch will do its best to accommodate price reductions for various automakers, but price wars should not continue indefinitely. If everyone is losing money, businesses will struggle to grow.
The current model of producing electric vehicles without profit in the automotive industry is unhealthy. Bosch hopes this situation won't persist for too long, as it is not conducive to the long-term development of the industry.
Moreover, concerning the issue of Chinese automakers expanding overseas, Chinese domestic brands need to establish localized production facilities abroad and coexist peacefully with local brands; otherwise, they may face further sanctions.
He explained: Automobiles are pivotal industries in countries like Germany, Japan, the United States, and South Korea. It's impossible to cede more market share. Chinese automakers need to collaborate with local brands for mutual development.
