On February 12, the China Passenger Car Association (CPCA) highlighted that the global proliferation of AI technology has spurred a dramatic uptick in electricity storage demand. This, in turn, has precipitated a notable surge in the prices of non-ferrous metals, notably copper, placing considerable cost burdens on automotive companies. Concurrently, the new energy vehicle (NEV) sector has witnessed a two-year consecutive sales surge. The escalating prices of resources like lithium carbonate have further intensified the competitive dynamics between upstream and downstream industry players.

It is projected that, following the holiday period, the fervor of price reductions and promotional activities within the NEV market will subside. The limited room for price adjustments may prompt consumers to adopt a more cautious stance towards vehicle purchases, potentially dampening short-term demand. Nevertheless, from a long-term perspective, steering clear of excessive price competition is poised to mitigate consumers' propensity to adopt a wait-and-see approach, thereby fostering the robust and sustainable growth of the industry.