Automobiles "fast-moving" worry who?

In the era dominated by fuel vehicles, "launching a facelift model every year and a major model change every five years" was the default development rhythm of the automotive industry. However, after entering the electrification era, "a facelift every six months and a model change every year" has become the mainstream trend in the industry. Some brands have even adopted aggressive strategies for the same car series, launching three new models in just a year and a half.

"The speed at which Chinese automotive companies launch new models is astonishing, taking only half the time of traditional automakers!" said Jim Farley, CEO of Ford Motor Company.

Technological iteration is an important signal of industry progress, but along with rapid product iteration, some problems have also arisen.

Some car owners find that shortly after purchasing a new car, a new model is announced. The new car not only has a reduced price but also comes with more features, causing the newly acquired vehicle to depreciate instantly, leaving the owners with a sense of being "outdated."

In the fiercely competitive market environment, automobile companies are both increasing the pace of new car launches by adopting a "massive new release" strategy and continuously lowering prices to capture market share. Some companies can launch dozens of new models within a year. However, after all the hustle, they find that only a few models actually achieve a sales breakthrough and bring profits to the company.

At the Tianjin Auto Forum on September 13, Li Tianwei, director of the Atmospheric Environment Department of the Ministry of Ecology and Environment, pointed out that as the pressure to reduce costs in the industry increases, some automakers have significantly reduced the use of precious metals in three-way catalytic converters below the industry average, greatly increasing emissions risks. "Cost reduction cannot come at the expense of environmental performance, and cutting expenses should not compromise public health and well-being," said Li Tianwei.

The price of cars has dropped, but existing customers aren't pleased.

Price cuts to compete for market share remain the car manufacturers' ultimate strategy.

The new generation IM LS6, which officially started pre-sales on September 10, has a starting price of 197,900 yuan, significantly lower than the current model's starting price of 239,900 yuan, representing a direct reduction of 40,000 yuan. On September 1, Tesla announced a price cut of 10,000 yuan for the long-range rear-wheel drive version of the Model 3, just under a month after its launch on August 12.

The price competition in the mid-size car market has entered a "white-hot" phase, with several mainstream joint venture models lowering their prices to historical lows through official price cuts and dealer discounts. Currently, the 2024 model of the new Xuan Yi 1.6L Comfort version has a bare price of only 59,800 yuan. The Langyi New Sharp Edition starts at a fixed price of 79,900 yuan. The Corolla has officially reduced its price by 43,000 yuan, bringing the starting price down to 79,800 yuan. The Xuan Yi Classic model has dropped below the 70,000 yuan price threshold, with a starting price of only 69,800 yuan.

The price cuts of luxury brands are astonishing. In August, Jaguar Land Rover released a poster announcing that the manufacturer's suggested retail price for the Range Rover Evoque L would be adjusted to start at 239,800 yuan, with the promotion valid from now until September 30, 2025 (inclusive). This represents a staggering reduction of 190,000 yuan from the original manufacturer's suggested retail price of 429,800 yuan. Such dramatic price cuts are not isolated incidents; for instance, the BMW iX1, which was previously priced at nearly 300,000 yuan, has now seen its entry-level price plummet to the 150,000 yuan range, a reduction of nearly 50%.

According to the data from the China Passenger Car Association, there were 106 new car models that saw price reductions from January to July this year. Although this is less than the 147 models that saw price cuts during the same period in 2024, the scale of the price war is still far greater than that of the same period from 2020 to 2022.

Car price reductions, which were originally seen as a way to benefit consumers, have begun to draw complaints from an increasing number of old car owners. Some owners express that after just three months of owning their car, the model has dropped in price by 30,000 yuan, causing their vehicle to instantly "depreciate and become outdated." For consumers, a car is already a high-value major purchase, and no one wants to experience the anxiety of "losing money right after buying."

In contrast, amidst fierce market competition, car companies are emphasizing cost reduction and "price competition" while also being exhausted by the "accelerated iteration" race.

Chery Automobile Executive Vice President Li Xueyong revealed a set of data at the 2025 Automotive Pioneer Thought Sharing Event that expressed the industry's helplessness. "In the past year, about 710 new cars were launched in China. While it seemed lively, only 10% of them managed to sell over 5,000 units per month after their launch. Out of the 700-plus models, only 69 met this standard, not to mention the breakout hits selling over 10,000 units monthly," said Li Xueyong.

In addition, according to data from "Easy Car Journal," by 2024, domestic car manufacturers have been launching an average of 1,158 iterative models annually over the past five years, equivalent to 3.2 new or facelifted cars coming online each day. The vehicle development cycle has also been reduced from the previous 36-48 months to 12-18 months.

To keep up with the pace of iteration, car companies have to invest heavily in research and development, adjust supply chains, and modify production lines. However, launching a large number of new models disperses R&D resources, and frequent "price cuts and increased configurations" continuously squeeze profit margins. Many car companies are beginning to fall into the vicious cycle of "iterating for the sake of iterating," leading to increasing operational pressure.

"Not all model updates are necessary." Some industry observers bluntly state that certain car companies, driven by competition, are forced to increase the "number of iterations," turning updates into mere color changes, label swaps, and minor interior adjustments. Even three-color stickers and fake air vent decorations sold on e-commerce platforms have become central changes in some brands' "annual updates." Some car companies conduct updates three times a year, each time only adding or removing seat heating or adjusting the car's theme, yet they claim to have made a "comprehensive upgrade." This practice of "updating for the sake of updating" not only leaves consumers overwhelmed and confused but also exhausts brand trust.

The Controversy of the "Fast-Moving Consumer Goods" Nature of Automobiles

The increasingly fast iteration speed, ever-decreasing prices, and more frequent vehicle replacement rates have led to controversy over the "fast-moving consumer goods" nature of automobiles.

Lu Fang, the CEO of Voyah Automobile, stated bluntly: "The current automotive industry is showing obvious characteristics of 'fast-moving consumer goods', with faster iterations of new cars, continuous innovation in marketing methods, and the car replacement cycle for consumers has shortened to 3-5 years."

The term "fast-moving consumer goods" typically brings to mind packaged foods, personal care products, and other daily necessities that are consumed quickly and replaced frequently. These products generally have a short lifespan and high consumption frequency, with profits mainly supported by large sales volumes. In stark contrast, automobiles have long been considered a prime example of "durable goods." As a significant expenditure second only to real estate, it's common for a vehicle to be used for 10 or even 15 years. When consumers purchase a car, they are not only acquiring a means of transportation but also pursuing reliability and a sense of security over long-term use.

Lu Fang stated that the current market phenomenon of "rapid updates and quick car replacements" essentially stems from consumers' pursuit of "novelty." However, satisfying consumer demands does not mean abandoning the core attributes of automobiles. "True innovation should not solely pursue 'speed'," he emphasized. The core values of a car always lie in high safety, high reliability, and high durability. As a "long-term partner" for users, a car needs to accompany them through various complex road conditions and harsh environments, taking on the responsibility of protecting user safety. It is by no means a fast-moving consumer good that can be discarded after a period of use.

FAW Audi Executive Vice President Li Fenggang also believes that the design lifespan of consumer electronics is typically 3 to 5 years, and consumer-grade chips are allowed to have a defect rate of 500 PPM (meaning 500 defective products per million units). In contrast, the expected lifespan of a car can reach 10 to 15 years, and the defect rate of automotive-grade chips must be controlled below 1 PPM (one in a million), while also being able to withstand extreme environmental tests ranging from -40°C to 150°C. This gap is the fundamental difference between automobiles and fast-moving consumer goods.

Innovation in the automotive industry is certainly important, but stability should not be overlooked; pursuing speed is understandable, but safety should not be forgotten. For consumers, there's no need to be led by "new product anxiety." Instead of chasing fleeting "novelty," it's better to value the long-term safety, reliability, and value retention of a car. For car companies, it's more important to break out of the vicious cycle of speed competition and realize that a "mass of new releases" is not as valuable as "quality hits," and "superficial facelifts" cannot surpass "in-depth technical cultivation." Only when consumers make rational purchases, car companies focus on technology and quality, and the industry has a comprehensive regulatory framework, can the entire automotive industry return to sustainable and healthy development, completing a better-quality transition to electrification.