On May 31, the China Association of Automobile Manufacturers (CAAM) released an "Initiative on Maintaining Fair Competition and Fostering Healthy Industry Development" in response to the intensifying price competition within the automotive sector. On the same day, officials from the Ministry of Industry and Information Technology (MIIT) voiced their endorsement and support for this initiative, vowing to enhance efforts to address such competition and facilitate the optimization of the industrial structure. The ensuing price war has significantly impacted the profitability of automakers and dealers. Data from the National Bureau of Statistics indicates that in 2024, profits in the automotive manufacturing industry totaled 462.3 billion yuan, marking an 8% year-on-year decline, with a profit margin of 4.3%, lower than the 5.4% margin for overall industrial enterprises. As of the first quarter of this year, this profit margin has further slipped to 3.9%.