March 1 news indicates that as market competition intensifies, price reductions have become a standard practice within the automotive industry. Data released by the China Passenger Car Association reveals that a total of 227 models underwent price reductions throughout 2024. Regarding the extent of these reductions, new energy vehicles (NEVs) experienced an average price decrease of RMB 18,000, marking a 9.2% decline. In contrast, new conventional fuel vehicles saw an average price reduction of RMB 13,000, reflecting a 6.8% drop. This trend has consequently led to a decline in automakers' profits. In 2024, the profit of the automotive industry amounted to RMB 462.3 billion, marking an 8% year-on-year decrease, with a profit margin of just 4.3%, which is lower than the 6% average for downstream industrial enterprises.

Industry experts emphasize that fostering deep collaboration between automakers and battery companies can effectively help reduce costs, develop more tailored batteries, and establish a competitive edge through differentiation. However, the power battery sector is confronted with a structural overcapacity issue, where high-quality capacity remains in short supply.