Avatr Chairman Calls Unprofitable Sales "Fake Sales," Urges Industry to End Price Wars and Embrace Innovation and Globalization

At the 2026 Future Mobility Pioneers Conference, Wang Hui, Chairman of Avatr Technology, stated that the automotive industry is currently facing challenges to its overall health, emphasizing that "sales without profit are illusory, and scale achieved through price wars represents false prosperity." He pointed out that over the past three to five years, homogenized competition has become widespread across the industry, with "involution" emerging as a common strategy. Companies have been competing not only on price but also by constantly outdoing each other in specifications and services—ultimately eroding their own profitability. Wang noted that many high-quality products have failed to genuinely enter consumers’ consideration sets, resulting in significant resource waste for both companies and the industry. This reflects a misalignment between product strength and market perception, and he stressed that relying solely on pricing tactics cannot foster healthy user relationships. According to Wang, China’s auto market has entered a phase of stock-based competition, and companies must adopt prudent operational strategies while actively expanding into global markets to avoid becoming trapped in domestic price wars. On the product front, Wang urged the industry to move beyond "design imitation" and shift from copying to original innovation. He argued that without genuine originality, it will be impossible to build world-class automotive brands capable of competing globally. Emphasizing that the auto industry is a marathon requiring endurance and resolve, Wang asserted that true value creation stems from long-term brand building and the accumulation of user trust. He advocated for “shifting from selling products to strengthening brands—focusing less on volume and more on crafting premium offerings.”