China’s NEV Market Faces ‘Involution’ Crisis as Auto Group Sounds Alarm 🚨🚗

China's booming new energy vehicle (NEV) sector is at a crossroads, with industry leaders warning that cutthroat competition could derail its global dominance. The China Association of Automobile Manufacturers (CAAM) has called for an end to 'involution'—a term trending in Chinese tech circles describing self-destructive rivalry—amid slumping profits and market panic.

From Boom to Gloom? 📉

NEVs now make up over 40% of new car sales in China, but the party might be over. CAAM revealed that aggressive price wars, sparked by a major automaker's May 23 discount spree, are squeezing margins and threatening innovation. 'Companies are racing to the bottom,' the group warned, 'and everyone loses.'

Price Wars Spark Safety Fears ⚠️

While cheaper EVs sound like a win for consumers, CAAM argues the chaos risks:

• 🛑 Eroded service quality
• 🛑 Compromised safety standards
• 🛑 Stalled tech breakthroughs

'This isn't healthy competition—it's mutually assured destruction,' one analyst told NewspaperAmigo.

Rebooting the Roadmap 🔄

CAAM's survival guide for automakers includes:

• ✅ No below-cost sales
• ✅ Transparent marketing
• ✅ Collaborative innovation

As the world watches China's EV revolution, this wake-up call could determine whether the sector accelerates into the future or spins its wheels.

Reference(s):

China auto group warns of harmful NEV market 'involution'

cgtn.com