Wang Xia of CCPIT: Smart EVs Enter Rapid Consolidation Phase as Price Wars Lose Steam

The China Automotive Chongqing Forum was held in Chongqing from June 12 to 13, 2026, under the theme “Shaping the Future of the Industry in an Era of Transformation.” In his opening remarks, Wang Xia, President of the Automotive Sub-Council of the China Council for the Promotion of International Trade, noted that the current auto market is experiencing an unprecedented simultaneous decline in sales volume, revenue, and profits—a phenomenon rarely seen in history—and that the marginal effect of price wars is rapidly diminishing. Wang raised three critical questions: Is the so-called “value war” merely a timely slogan or a survival imperative? Is globalization an optional extra or a new core subject? And is AI simply an upgrade in intelligence or the next baton in a technological revolution? He stressed that sales volumes unsupported by profitability are hollow numerical games, and profits reliant on subsidies are unsustainable. Data shows that from January to May 2026, nationwide passenger vehicle retail sales totaled 7.1 million units, down nearly 20% year-on-year. The auto industry’s profit margin in Q1 stood at just 3.2%, below the average for large-scale industrial enterprises nationwide, while revenue from automotive manufacturing saw a slight year-on-year decline. Meanwhile, consumer enthusiasm for price wars has cooled; some brands have begun raising prices or reducing discounts. Sales of new energy vehicles priced above RMB 300,000 grew significantly faster than the overall market, and several emerging EV makers have achieved consecutive quarters of profitability—signaling the industry’s shift from “competing on price cuts” to “competing on survival.” On globalization, Wang pointed out that from January to May 2026, China exported 4.238 million passenger vehicles, up 48.7% year-on-year, with May alone accounting for 784,000 units—35% of manufacturers’ total sales. However, overseas market conditions are growing increasingly complex, with U.S. tariffs, European regulatory barriers, and Russia’s scrappage taxes adding difficulty to international expansion. He emphasized that globalization is not about simply replicating domestic models abroad but represents a new discipline requiring restructured thinking and strategies, with sustainable development achievable only through deep local ecosystem integration and win-win cooperation. Regarding AI, Wang stated that 2026 is widely regarded as the inaugural year of AI in the automotive industry, with over 30 large AI models already deployed in vehicles. AI is not merely a technological upgrade—it will fundamentally reshape the industry’s foundational logic, the relationship between OEMs and suppliers, and the broader automotive ecosystem, driving cars to evolve from mobile terminals into intelligent mobile agents and potentially giving rise to new competitors with native AI DNA. In conclusion, Wang remarked that the smart electric vehicle sector has entered a period of rapid consolidation, and this exceptionally challenging phase will likely persist for at least five years. Only by maintaining boldness in technological innovation and market competition while adhering to rationality and balance in strategic planning can the industry achieve healthy, sustainable growth.