The 2025 New Automotive Cooperation Ecosystem Exchange was held in Suzhou from December 5 to 6. Zheng Heng, Deputy General Manager of GAC GROUP, attended and delivered a speech.
Zheng Heng noted that in recent years, the term "involution" has characterized a complex phase in China's auto market. Price wars and homogeneous competition have trapped the industry in a dilemma of increasing volume without profits, sparking widespread reflection on the sector's healthy development.
Drawing from GAC's experience, he shared several insights: value competition should replace price-driven attrition. The focus of competition must shift from spec-and-price battles to breakthroughs in core technologies, refining user experience, and shaping brand value.
Differentiation outperforms homogeneous rivalry. In the electrification and intelligentization race, companies must carve out unique niches and build irreplaceable advantages.
Open collaboration trumps isolated competition. Ensuring the resilience and efficiency of industrial and supply chains requires automakers and suppliers to work in close partnership.
Zheng Heng believes these transformations mark critical milestones in the industry's maturation. Yet challenges persist—complex macro conditions, accelerating technological disruption, and intense market competition. Balancing short-term survival with long-term strategy has become the defining challenge for the next five years.
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