The article said that recently, some automobile companies have set off a new round of price wars, and the phenomenon of rolling competition within the industry has once again sparked a public debate. The China Automobile Association issued an initiative to oppose car companies' price wars and maintain a fair competitive order. In the short term and on the surface, the price war seems to benefit consumers because they can buy more products at lower prices. But it is important to be clear that ostensibly low prices have higher hidden costs. If the supporting factors of price competition are business model innovation, technological progress, or cost reduction, then it is a virtuous cycle. However, in many cases, price wars rely on huge subsidies from platforms or excessive competition from market participants, and this situation is unsustainable.

The article said that recently, some automobile companies have set off a new round of price wars, and the phenomenon of rolling competition within the industry has once again sparked a public debate. The China Automobile Association issued an initiative to oppose car companies' price wars and maintain a fair competitive order. In the short term and on the surface, the price war seems to benefit consumers because they can buy more products at lower prices. But it is important to be clear that ostensibly low prices have higher hidden costs. If the supporting factors of price competition are business model innovation, technological progress, or cost reduction, then it is a virtuous cycle. However, in many cases, price wars rely on huge subsidies from platforms or excessive competition from market participants, and this situation is unsustainable.