Geely chief urges shift from price wars to quality, advocates for green logistics

The Chinese automotive industry is moving away from vicious competition, or "involution", toward a more sustainable and quality-focused development model, Li Shufu, a member of the National Committee of the Chinese People's Political Consultative Conference, said.

Speaking to China Daily on Tuesday, Li, who is also the chairman of Geely Holding Group, highlighted a significant shift in the sector's competitive landscape.

"The push against 'involution' has yielded positive results," Li said. "Players in the auto industry are stepping away from excessive internal competition and are now committed to connotative, sustainable development."

While price wars have characterized the market in recent years, Li noted that the situation has notably improved, creating a healthier environment for the industry. He emphasized that the ultimate challenge for every automaker remains how to provide a superior consumption experience for users.

"We should not simply engage in price wars," Li stated. "While maintaining cost and price advantages, we must instead fight battles based on quality, service, brand, and ethics."

Beyond market dynamics, Li's proposal to this year's two sessions focuses on decarbonizing the logistics sector. He called for the vigorous promotion of methanol-electric trucks to tackle the high pollution and emissions associated with road freight.

According to industry data, road transport accounted for 72.4 percent of China's commercial freight volume in 2024. Despite their utility, trucks contributed 83 percent of total nitrogen oxide emissions and 90.4 percent of particulate matter emissions from motor vehicles.

Li emphasized that methanol-electric trucks offer significant advantages — being clean, low-carbon, and renewable. He described them as an ideal alternative to diesel trucks, particularly for medium- and long-haul freight operations.

To facilitate this transition, Li urged authorities to accelerate the development of methanol fuel supply infrastructure, improve industry standards, and enhance policy support. These measures, he argued, are essential to facilitate the large-scale adoption of methanol-electric trucks and advance the transportation sector's progress toward China's dual carbon goals.