Avatr Chairman Criticizes Price Wars, Advocates for 'Value Leap' Strategy

[Corporate Strategy] Avatr Chairman Wang Hui stated that sales without profit are illusory, and price wars create only false prosperity.

Core Trend: Industry Consensus Shifts Toward 'Value Leap'

At the 2026 Future Mobility Pioneers Summit, Wang Hui noted that automakers’ strategies over the past three to five years have been highly homogeneous, with 'involution' becoming the only perceived path forward—but ultimately, it is their own profits that suffer. He emphasized that sales without profit are fake sales, and scale achieved through price wars is unsustainable.

Key Data: Profit Margins Continue to Decline

Domestic auto sales in 2025 exceeded 34.4 million units, yet the industry’s average profit margin was only 4.1%; by January–February 2026, it had further dropped to 2.9%, highlighting mounting profitability pressures.

Strategic Foundation: From Follower to Innovator

Avatr has outlined three strategic shifts: first, focusing on premium offerings—Changan Group has streamlined its model lineup from 63 to 36 vehicles; second, enhancing safety with the launch of the 'Taihang Intelligent Chassis 2.0'; and third, moving away from derivative design to uphold originality in building a global brand.