On August 24, Lei Jun, the founder, chairman, and CEO of Xiaomi Group, remarked in a joint interview that the trajectory for high-end development within China's automotive sector is well-defined. However, he noted a current bottleneck: the domestic high-end auto market is experiencing a lack of seamless product transitions, while the luxury car segment is undergoing restructuring. Lei Jun highlighted that China achieved import substitution for the majority of automotive components a decade or two ago, with the primary disparities now lying in vehicle design and manufacturing proficiency. Presently, in the mid-to-high-end market, critical high-end components such as automotive chips, in-vehicle operating systems, and carbon-ceramic brake discs are embarking on a path of import substitution. This transition is expected to span 5 to 10 years and necessitates the involvement of companies like Xiaomi to serve as "chain leaders," propelling the systematic advancement of China's high-end components industry.

Lei Jun emphasized that the core of industry "involution" lies in competition. He observed that China's automotive industry boasts robust overall competitiveness and well-established mid-to-low-end products. Yet, the mid-to-low-end market is characterized by intense rivalry, whereas the mid-to-high-end market suffers from a scarcity of premium offerings. To facilitate further升级 in China's automotive industry, Lei Jun argued that it must break free from its comfort zone and tackle pivotal challenges, such as crafting distinctive and high-quality products, and excelling in the mid-to-high-end and ultra-high-end segments.