On March 17th, according to media reports, regarding the pros and cons of price wars in the Chinese automotive market, experts believe it's an essential path for China to become an automotive powerhouse.
Whether price wars among car manufacturers are beneficial or detrimental, for consumers, it's undoubtedly advantageous. After all, they can spend less money to buy better cars and enjoy more features.
However, some consumers are concerned that price wars may lead to cost-cutting measures by manufacturers in unseen areas, such as using lower-grade steel or reducing safety features.
Chery Automobile Chairman Yin Tongyue believes that price wars force companies into a passive position. If car manufacturers don't engage in the battle, they may lose a significant portion of the market.
Nevertheless, he also admits that price wars are inevitable. While reducing prices competes downwards, car companies still need to compete upwards, and there's ample room for improvement in that regard.
Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of North Industry University and Director of the WADAFU Digital Automotive International Cooperation Research Center, believes that both viewpoints have merit, but ultimately, the automotive market will favor the winners.
Drawing from the experiences of mature markets, for China to transition from a major automotive player to a powerhouse, car manufacturers must undergo the test of price wars and compete to survive.
"If this process doesn't occur, China may never produce world-class automotive brands, meaning it might never become an automotive powerhouse," Zhang Xiang stated.
