The Economic Daily published an article saying that breaking down “internal rolling” competition in the automobile industry has also seen a new move. Entering July, BYD stopped the “limited-time price” nationwide and introduced a new car purchase policy. Tesla China announced a 10,000 yuan increase in the price of the long-range all-wheel drive version of the Model 3. This has been interpreted by the industry as the “price war” in the car market is putting the brakes on. The reason why this “price war” in the car market can be put on the brakes is, on the one hand, that the marginal effect of car companies' “price reduction and increase volume” is diminishing. Take a leading car company as an example. In the first half of this year, the monthly sales volume was over 300,000 vehicles. This shows that the effect of simply relying on price cuts to stimulate sales is weakening. What's more, when you cut prices, friends, and merchants are also cutting prices. In a situation where the product strength is about the same, major car companies compete to fight a disorderly “price war”. In the end, “no one makes money,” and sales are still not up. Since a disorderly “price war” is meaningless in increasing sales, there is bound to be insufficient motivation to continue. On the other hand, the effects of the relevant departments on “internal rolling” competition control are showing. Since May, the China Automobile Association issued the “Initiative on Maintaining Fair Competition Order and Promoting the Healthy Development of the Industry”, which has received a positive response from the industry. The Ministry of Industry and Information Technology clearly stated that the disorderly “price war” has no winners, let alone future, and has strengthened product consistency spot checks to cooperate with relevant departments in carrying out anti-unfair competition enforcement and maintain a fair and orderly market environment.

The Economic Daily published an article saying that breaking down “internal rolling” competition in the automobile industry has also seen a new move. Entering July, BYD stopped the “limited-time price” nationwide and introduced a new car purchase policy. Tesla China announced a 10,000 yuan increase in the price of the long-range all-wheel drive version of the Model 3. This has been interpreted by the industry as the “price war” in the car market is putting the brakes on. The reason why this “price war” in the car market can be put on the brakes is, on the one hand, that the marginal effect of car companies' “price reduction and increase volume” is diminishing. Take a leading car company as an example. In the first half of this year, the monthly sales volume was over 300,000 vehicles. This shows that the effect of simply relying on price cuts to stimulate sales is weakening. What's more, when you cut prices, friends, and merchants are also cutting prices. In a situation where the product strength is about the same, major car companies compete to fight a disorderly “price war”. In the end, “no one makes money,” and sales are still not up. Since a disorderly “price war” is meaningless in increasing sales, there is bound to be insufficient motivation to continue. On the other hand, the effects of the relevant departments on “internal rolling” competition control are showing. Since May, the China Automobile Association issued the “Initiative on Maintaining Fair Competition Order and Promoting the Healthy Development of the Industry”, which has received a positive response from the industry. The Ministry of Industry and Information Technology clearly stated that the disorderly “price war” has no winners, let alone future, and has strengthened product consistency spot checks to cooperate with relevant departments in carrying out anti-unfair competition enforcement and maintain a fair and orderly market environment.