News about the 2024 China Auto Forum and Opinions on the 'Price War'

TapTechNews June 8 news, during the 2024 Chongqing Auto Forum in China, Li Yunfei, general manager of BYD's brand and public relations department, gave a speech yesterday and talked about his view on the 'price war'.

Li Yunfei said that many auto companies including BYD have raised their prices in the past two years due to factors such as subsidy withdrawal and the increase in battery raw material prices. And now the situation has changed, and the significant decline in raw materials has made price reduction possible. 'Why hasn't the decline in raw material costs been reflected in product pricing now? I think it is immoral to consumers.'

Li Yunfei compared the competition among enterprises to 'playing cards': We should act according to our capabilities and should not be angry or break the rules because of temporary gains and losses. 'If someone plays a card, you can follow if you can, and pass if you can't, don't be angry, and don't turn the table, because there is the next round.'

The Chinese auto industry has developed to now, and every enterprise has experienced some pain and setbacks in the development process, but no one has fallen down and they are all at the card table. He won this round, and I will come in the next round, and I will start over again, this is a benign and healthy competition, which is also long-termism, which is good for consumers and also beneficial to the healthy development of the industry.

Li Yunfei also talked about the importance of technology and talents, and he said that the more than 10 million college graduates in China every year are a very valuable asset of the Chinese auto industry.

TapTechNews summarizes the following partial views expressed by the executives of various auto companies at this forum:

Zhu Huarong, chairman of Changan Auto: 'Rolling' is the process of good money expelling bad money, and rolling itself means the pursuit of excellence, which will roll out a new height of Chinese brands and will roll out the maximization of user benefits and truly create value for users.

Zeng Qinghong, chairman of GAC Group: In 2030, the auto market will be a '433' structure, 40% is hybrid, 30% is pure electric, and 30% is fuel cars. It is suggested that when the share of new energy vehicles and pure electric reaches 50%, the government department should study 'equal rights for fuel and electricity'.

Wang Chuanfu, chairman and president of BYD: There is competition to roll, and only by rolling can there be technological breakthroughs, industrial upgrading, and excellent products can be born. Rolling is a natural rule, don't be anxious, and only by actively embracing can you come out of the competition.

Li Shufu, chairman of Geely Holding Group: The degree of involution in the Chinese auto industry is the first in the world, and the price war is higher and higher in waves, which is also unrivaled in the world. This phenomenon is both a good thing and a bad thing. If the marketization level is high, the law is sound, and law enforcement is strict and transparent and fair competition, it is a good thing; otherwise, it is a bad thing.