A domestically manufactured car on display during an expo in Shanghai. WANG YUSHI/FOR CHINA DAILY
China's automotive industry has raised a collective alarm over what insiders called "involution-style" competition, as government authorities, industry associations and automakers said that an unchecked race to the bottom will endanger the sector's long-term health.
According to the latest report from the China Automobile Dealers Association, price wars led to a cumulative retail loss of 177.6 billion yuan ($24.7 billion) in the new car market during the first 11 months of 2024, while over 60 car models saw price cuts in the first four months of this year.
