The 29th Greater Bay Area (GBA) Auto Show and 3rd Future Auto Pioneers Summit opened in Shenzhen amid a nuanced atmosphere. On May 31, the China Association of Automobile Manufacturers (CAAM) issued an industry-wide initiative condemning “involution-style price wars,” publicly endorsed by regulators.
This “anti-involution” sentiment permeated the summit, emphasized during opening speeches. Wang Xia, chairman of the China Council for the Promotion of International Trade (CCPIT) Automotive Sub-Council, urged automakers to refocus competition by answering three questions: “Is R&D investment sufficient?” “Are products differentiated enough?” and “Is global expansion aggressive enough?”
Notably, executives from multiple automakers addressed these themes:
- NIO’s William Li emphasized “three new core technologies” (smart chips, OS, chassis) as key for premium EVs.
- XPeng’s He Xiaopeng argued AI cars require “high computing power + large models,” teasing Turing-chip vehicles for late 2025.
- Deepal’s Deng Chenghao announced “Smart Leadership 2030” strategy targeting 2M sales (35% overseas) with AI-enhanced R&D.
AI Dominates Tech Discourse
Speakers—including Harmony Smart Drive’s Jin Yuzhi and Horizon Robotics’ Yu Kai—centered discussions on autonomous driving and AI. William Li highlighted NIO’s “world model” for ADAS, while He Xiaopeng linked XPeng’s 370% overseas growth to AI-driven expansion.
Foundational Experience Endures
Despite the AI focus, traditional strengths remained pivotal:
- Mercedes revealed 450Wh/kg solid-state batteries (1,000km range) and CLA EV’s 572km real-world range (66% CLTC efficiency).
- Deepal showcased hybrid tech and battery thermal management for “EV accessibility.”
Will Price Wars Truly End?
CAAM’s call to halt price wars gained support:
- Chery’s Yin Tongyue called price wars “detrimental,” while Voyah’s Lu Fang urged “rational pricing over cutthroat tactics.”
- Industry consensus: Stable prices protect profits for R&D and consumer trust.
Critics warn ending discounts may raise EV ownership costs, though unsustainable pricing risks industry health. As Deng Chenghao stated: “A carmaker’s soul lies in delivering technology and experience—not just low prices.”
While the “anti-involution” movement gains momentum, whether price wars fade or resurge hinges on automakers’ ability to monetize tech advantages and globalize sustainably.
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