FAW executive: Losing 20,000 to 30,000 yuan on selling a car. Will local companies always fight each other in the country?

At the recently held high-level forum on the development of smart electric vehicles, Zhou Shiying, deputy general manager of the Strategy and Cooperation Department of China FAW, said that currently, selling a car in the industry often costs 20,000 to 30,000 yuan. Are local companies destined to fight crazily in the domestic market forever?

Zhou Shiying pointed out that most of the companies currently participating in the competition are local Chinese companies. If local brands cannot effectively integrate excellent domestic resources in the field of intelligence and work together, then the goal of going out of China and going global will become out of reach.

The current status quo is that many excellent parts suppliers are in extremely difficult living conditions, and vehicle companies are also in deep trouble. The hot market that everyone sees is often just superficial prosperity. It is not clear in the industry where the huge investment is going and who is the real profiteer.

In response to this situation of losing money and making money, she issued a warning to the entire industry. If Chinese companies cannot support each other and allow professional companies to leverage their respective strengths under an open and transparent technical structure, then in the long run, the prospects of the entire industry will be very worrying.

She emphasized that this low-price fight and disorderly competition are overdrafting the future of the industry. If the situation of losing tens of thousands of yuan when selling a car continues, companies will lose the motivation to continue innovation and research and development, and ultimately the health of the entire industry chain will be damaged.

Zhou Shiying called on the industry to return to rationality and enhance overall competitiveness through technological integration and professional division of labor. She believes that only by persisting and finding a more efficient cooperation model can the Chinese automobile industry truly have the strength to compete with international giants and obtain reasonable profit margins in overseas markets.

This revelation of the deep crisis in the industry aroused strong resonance among the guests present. As the new energy transformation enters the deep-water zone, how to shift from involution to win-win has become the most urgent issue facing all Chinese car people.