TapTechNews July 13th news, the 2024 China Auto Forum was held in Shanghai on July 12th, and the meeting focused on the hot issues and key topics in the automotive industry.
Today, Yang Xueliang, senior vice president of Geely Holding Group, when participating in the '2024 China Auto Forum', mentioned that many of the current chaos in the industry are inseparable from the involution in the automotive industry.
He said that involution is a derogatory term, a bad phenomenon, and a synonym for unhealthy competition. Although everyone doesn't want to be involved in involution and hopes for a healthy competitive environment and a good legal system, because some enterprises first initiated the involution action, dared to challenge the high-voltage line of the law, and dared to break through the moral bottom line, and thus gained a first-mover advantage, while other enterprises can only be passively involved and passively become a part of the involution.
He pointed out that the result of involution is that all parties involved in the involution move towards failure together and eventually die together due to blood loss. He hopes that the word 'involution' can disappear from the dictionary of the Chinese automotive industry. As long as the word 'involution' does not disappear, Chinese cars will not truly go global.
Yang Xueliang called for: It is necessary to study how to get rid of involution, get out of the involution strange circle, move towards a healthy competitive world, and embark on a standardized development track. This is not only the responsibility of an automotive company, but also related to the future and destiny of the entire Chinese automotive industry.
Referring to the previous report of TapTechNews, Cui Dongshu, secretary-general of the China Passenger Car Association, said that the scale of price reductions from January to May 2024 has exceeded 90% of the whole year of 2023 and exceeded the total scale of price reductions in 2022.
Compared with Yang Xueliang's point of view, Zhu Huarong, chairman of Changan Automobile, believes that 'the involution in the automotive industry is a normal process of good money driving out bad money and is the best way for the industry to quickly return to a healthy competition'; while Wang Chuanfu, chairman of BYD, believes that 'involution' is a kind of competition and the essence of market competition. 'The core of a market economy is competition, and market competition is an excessive economy. Only when there is excess will there be competition, and competition can bring prosperity.' At the same time, he called on all entrepreneurs to embrace and participate in the involution to support Chinese brands for the country and build the world's first brand.