Avatr Chairman Wang Hui: Price Wars Are Unsustainable; Originality, Safety, and Systematic Global Expansion Are Key to Chinese Automakers’ Success

At the 2026 China Automotive Chongqing Forum, Wang Hui, Chairman of Avatr Technology, delivered a speech stating that the ongoing price war in the automotive industry is a dead end. He warned that frequent price cuts by brands intensify consumers’ sense of betrayal and erode trust. Citing a McKinsey report, he noted that in overseas markets, price accounts for only a net 3% influence on purchasing decisions, while technology contributes 20.7%, and brand influence has risen significantly—ranking second as of 2025. Wang outlined three essential directions for Chinese automakers to succeed globally: originality, safety, and systematic internationalization. He emphasized that originality serves as the "passport" for Chinese car brands going global, driven by confidence in design, technology, branding, and culture. On safety, he stressed that it is the baseline of luxury—not just passive safety but also systemic safety. In intelligent driving, he asserted that user safety must take precedence over convenience, and called for enhanced consumer safety awareness training. Regarding overseas expansion strategies, Wang argued that isolated breakthroughs are unsustainable; long-term recognition can only be achieved through systematic localization—leaving behind capabilities, jobs, and trust in local markets. Using Avatr as an example, he highlighted that the Avatr 11, priced domestically at approximately RMB 290,000, sells overseas for nearly RMB 450,000 (including tariffs), achieving a premium of over 50% and stable profitability. Avatr has already commenced production at its Thailand plant and established localized service response mechanisms in regions like the UAE to strengthen customer relationships. According to data from the China Association of Automobile Manufacturers (CAAM), China exported 4.059 million vehicles from January to May 2026, up 63% year-on-year. Customs data shows the average export price increased by USD 3,000 compared to the same period last year. Wang believes the Chinese automotive industry is now at a critical juncture—transitioning from size to strength—and that globalization represents its greatest opportunity, requiring a mindset of reverence and deep commitment to overseas markets.