There is a ＂price protection tide＂ in the automobile market. It is better to fight for price than to fight for value.

　　Corporate profits and market share complement each other and play games with each other, and price is the lever.

　　While the price war is in full swing, there is a "price protection tide" in the automobile market. Enterprises such as Ideal, Extreme Krypton, Tengshi, Nezha, Zero Run and so on have recently introduced price protection policies, claiming that they will not reduce prices in the next 90 days or even 120 days. If they reduce prices, the difference will be returned to consumers.

　　However, some experts said that only after the baptism of price war can enterprises become stronger. For enterprises whose sales volume is sideways and declining, it is meaningless to "protect the price". In the end, not only will the sales volume not go up, but it will also waste the market window and hand over the market share to competitors.

　　"Many products of this round of price war diving brand have reached the end of their lives. In the long run, price diving is not the normal state of the industry." Pu Yang, vice president of sales and operation of Weilai, said that the cyclical fluctuation brought by this technological revolution can not be crossed by price war alone, but needs to adhere to brand value. In the long run, the competition among enterprises will return to value creation.

　　On the surface, enterprise competition is the competition of products and prices, but the actual competition is the R&D strength, scale effect and vertical integration ability of enterprises. "Geely does not have to participate in the price war." Gan Jiayue, CEO of Geely Automobile Group, believes that only through technological innovation and management ability improvement, can the price war be transformed into a technical war, a service war and a value war, and continue to create value for users, can we truly have a competitive advantage.

　　With the changes of automobile industry, traditional automobile enterprises need to invest heavily in the fields of electrification, intelligence and networking, and are under the dual pressures of stable operation and transformation and upgrading. Cui Dongshu, Secretary-General of the All-China Passenger Transport Association, said that it is difficult to make money by selling new energy vehicles at present. Many large car companies rely on the profits of fuel vehicles to support the development of new energy vehicles, and most pure new energy vehicle brands are at a loss period. For large car companies, while stabilizing the sales of fuel vehicles, strengthening the technological innovation on the track of new energy vehicles can win the initiative. Fuel vehicles cannot blindly follow up the price reduction of new energy vehicles caused by multiple factors through "suicide price reduction".

　　Moderate downward adjustment of product prices, clearing inventory and properly recovering costs are normal business measures, which are conducive to stimulating consumers’ purchasing demand, but they cannot fall into price wars. In the view of Chen Shihua, deputy secretary-general of China Automobile Association, the price war will not last long, and value for money is the eternal business law.

　　"There are many reasons for this round of short-term promotion. Most of the preferential models introduced by enterprises are long-aged, old or unsalable cars. These models have already had considerable preferential prices before this round of promotion. In order to attract attention, increase customers and exaggerate the price reduction, terminal promotion is easy to mislead consumers, and it is necessary to attach great importance to the negative impact of this phenomenon on the development of the industry. " The China Automobile Association calls for providing positive public opinion guidance for the healthy and sustainable development of the automobile industry and creating a good consumer psychology and market atmosphere. In the process of stabilizing growth and promoting consumption, local governments should also adopt appropriate methods to jointly safeguard market order.

　　Automobile is an industry with large market, high technical content and refined management, and it is also a highly global industry. At present, the world has entered a new period of turbulent change, and the anti-globalization trend of thought and the risk of geopolitical conflict will inevitably affect the development of the industry. At the same time, the automobile industry is in a critical period of transformation and upgrading. The more in this turbulent change and transformation and upgrading, the more local governments and enterprises should maintain their strategic strength, actively maintain market order and supply chain stability in the industrial chain, lead regional and upstream and downstream enterprises, and jointly build a good industrial development ecology.

　　Zhu Huarong, chairman of Changan Automobile, suggested that the state should halve the consumption tax rate of automobiles with a displacement of 2.0L or less in time; Merge the vehicle purchase tax and the vehicle consumption tax, keep one tax, and increase the proportion of local fiscal retention. By reforming the consumption tax and purchase tax, it can not only reduce the burden of consumers to buy cars and expand their consumption, but also help to create a fairer consumption environment, thus guiding the healthy and stable development of the automobile industry. (Economic Daily reporter Yang Zhongyang)