In recent years, the greatest impression has been that the price battle among the major cars has continued and that the recent news of the collective drop in fuel car prices has led to the emergence of an increasingly cheap joint fuel vehicle, which is asking a question. Can the price advantage really save the joint fuel truck
I. Collective price reductions for jointly financed fuel vehicles
According to the poster news, in recent days, a new fast s has been officially listed at a “sip price” of $798 million. This model, defined as a “quick derivative”, has attracted considerable consumer interest through configurations such as 1. 5l natural air-inhaling engines, e-mail transformers and electronic blockers。
“77. 98 million is the price of a naked car, with insurance and acquisition tax being added to the amount of about 93,000.” on 6 april, a salesman from a popular 4s store in chinan described the new fast-moving s price as being at the bottom of the “single price”. This price strategy has been recognized by industry as a key initiative for mass groups to respond to new energy shocks and secure market shares for fuel trucks。
Public data show that in 2025, china's sales by mass groups declined by 8. 5 per cent over the same period, and that the market share of major vehicles, such as fast-moving and long-distance, was eroded by autonomous brands. A market test is still needed to reverse the decline in the “failure” of s at this speed。
The low-price strategy of fast s also triggered a chain reaction. On 6 april, during a visit to chinan's toyota gate, journalists found that 2025 carolina 1. 2t versions of the guide price of $12. 28 million had been reduced to $8. 28 million for naked cars. “the pioneer version of section 2026 `assumption' of $798,000 is not available, and the booking takes about a month.” one toyota staff member stated that the “sip price” was set for the plant and that there were no concessions。
At the same time, journalists learned from an east windsday specialty in zinan that the price of the 2026 achilles classic antenna guide was $799,000 and that the actual purchase price of the car was down to $62,000. In addition, 2026 of the top steamers are new and new, with a guiding price of $799 million, a real loan price of more than 50,000 and a full price of more than 60,000。
Ii. Can price advantages really save the fuel truck
At this point, in the face of this self-help operation, at a price, we have to ask: can the price advantage really be a life-saving straw for a jointly financed fuel truck to reverse its fate
First, the advantages of the joint venture have fundamentally reversed. Over the past few decades, the joint-venture fuel car has built an unmistakable competitive barrier in the chinese market, based on technical barriers, brand stubbles and supply chain advantages, as the chinese automobile industry has just become internationally integrated, with essentially technologically advanced products being introduced by the joint-venture brand, with brand premiums becoming its core profit source. At the same time, consumer trust in the joint venture brand stems from technical reliability and a sense of brand identity, a premium that provides a stable margin of profit for joint ventures。
Today, however, market patterns have been fundamentally reversed, the chinese automobile market has shifted from increased competition to stock games, the rise of new energy cars has broken the market monopoly on conventional fuel cars, consumer perceptions of cars have escalated from vehicles to intelligent travelers, and demand logic has been completely re-engineered. When autonomous brands take over users ' minds with intelligent, electric advantages, and when new energy cars re-establish market recognition with technological attributes, the brand premium for joint fuel vehicles loses its supporting soil。
Rather than a proactive marketing strategy, the price drops at this time, in the face of a survival crisis of declining sales, stock backlogs and shrinking profits, had to cut off the brand premium that had once been proud for the price of the market. While this means of survival appears to be decisive, it exposes the passivity and weakness of the joint-venture fuel car in market competition, disguising it from the back of the brand premium is a continuous loss of its core competitiveness rather than a rebuilding of competitiveness。
Secondly, the turn of the new energy car has become a trend. The transformation of the energy structure is an inevitable trend in the development of the automobile industry, and the replacement of fuel vehicles for new energy vehicles has become irreversible. In recent years, the country's new energy and automobile industry has grown rapidly, both autonomous and new-power brands, accelerating the deployment of new energy sources. The product matrix has been enriched, technology has continued to rise, and cross-cutting growth has been achieved, from a continuous range of miles, recharge efficiency to intelligent configurations, and policy-level support and guidance has contributed to the spread of new energy vehicles。
Correspondingly, new car penetration rates in new energy vehicles have continued to climb and have become the dominant choice in the market, which means that the market share of jointly financed fuel vehicles has been squeezed and the space for survival has become narrower. More notably, the competitive logic of new energy vehicles is completely different from that of fuel vehicles, whose core competitiveness is concentrated in the areas of triple power systems and smart technology, which are the short plates of jointly financed fuel vehicles。
Joint ventures rely mostly on technology exports from overseas parent companies, are slow to respond to the development of new energy technologies, are more oil-to-power-based, and lack core competitiveness to counterbalance with autonomous brands of new energy vehicles. In such cases, the joint fuel vehicle has to retreat from the fuel vehicle market, while the continued penetration of new energy vehicles has led to a shrinking of the cake in the fuel vehicle market, and the price reduction has become the only option for the joint fuel vehicle to keep its remaining market share. It needs to be made clear, however, that the penetration trend of new energy vehicles is irreversible and that joint fuel vehicles, even if they have saved short-term sales at reduced prices, will not change their long-term fate as they are phased out by markets。
Thirdly, excessive reliance on price warfare is prone to a vicious circle. Prices have become the advantage of a small number of joint-venture fuel vehicles, but this is yet another vicious circle in which the lower the price, the less able to undertake innovative research and development, and the institutional barriers to joint-venture vehicles make it difficult to innovate proactively. It's an extremely deadly industry death cycle. In competition in the business world, price reductions are always the easiest, but also the most dangerous, decision-making. When the jointly financed fuel truck used the price as the only moat, they were actually overdrafting their own future。
Profit is a source of research and development, and it is a simple economic commons. The price floor of the jointly financed fuel truck continues to pierce, implying that the profit of the bicycle has shrunk to zero. Without profits, no real silver or silver can be invested in the next generation of three power technologies, autopilot algorithms and software ecology. In the age of smart cars, the speed of technology overlaps is in the form of “monthly” or even “weeks”, and when research and development falls, it is driven away from product capacity and forced to further lower prices, thus falling into a “death spiral” that is less capable of research and development and less expensive。
The deeper reason is the insurmountable institutional barriers to joint ventures. From a systemic economic perspective, joint ventures are essentially a playing field for the interests of both the chinese and foreign sides. China lacks the right to define core technologies, while foreign countries are constrained by the globalized research and development cycle of platforms, which makes it difficult to react quickly to the rapid changes in the chinese market. In the face of the fast development model of china's new power of car-building, “small-paced, fast-tempered”, the joint venture's lengthy approval process and rigid global platform import mechanisms have become deadly constraints. They are not unaware of innovation, but rather of existing corporate governance structures and mechanisms for the distribution of benefits, and they are not allowed to undertake subversive initiatives。
Fourthly, the key to breaking the board is whether or not there is real indigenous innovation. The only way out of this situation is to break path dependence, complete top regime re-engineering and localization of the whole spectrum. Whereas the localization of the past was merely “made in china” and brought home mature models from abroad, it must now be “research and development in china” and “defined as china”。
Joint ventures must be sobered by the fact that overseas parent companies are no longer able or willing to customize the chinese market with a leading set of smart electric solutions. At this critical juncture in determining the survival and survival of the joint venture, the chinese side must truly stand up and no longer be a “substitute” and “sales agent” for overseas brands. To try to gain ownership of r&d, or even to break into the old supply chain system and enter directly into china’s home country’s highly mature and leading smart grid supply chain。
Instead of waiting for overseas parent companies to slowly export pure power platforms that are behind schedule, it would be better to put down their positions and engage in deep cross-border integration and joint development with local chinese leading technology firms, battery suppliers, and autopilot companies. The ability to sense market temperature can be restored only if the roots of r&d are deeply embedded in the fertile ground of china’s smart electric car, and if the minimum institutional and transaction costs are used to build its own innovation advantage。
In fact, for the time being, the joint venture is a great opportunity for transformation. If we can really study the chinese market, there are opportunities for the joint venture, but it is the determination of this strong man to break down
