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CNBC
21-07-2025
- Automotive
- CNBC
Chinese companies are waging fierce price wars — but the consumer isn't always the winner
Fierce price wars in China are hitting industries from cars to food deliveries to solar panels, squeezing profits and worsening the country's deflationary slide. Though consumers may be lured by ultra-cheap deals, the trade-offs for them are more complicated than they might seem. Since the pandemic and amid the ongoing housing slump, Chinese consumers have grown more price-sensitive, focusing on value and cutting non-essential spending. To stay competitive, carmakers have rolled out steep discounts and slashed prices — helped by government subsidies — deepening a price war that's raged on for years. In the so-called instant commerce sector, Alibaba, and Meituan are racing to expand delivery networks and pledging billions in subsidies, enticing customers with deals like bubble tea for mere cents. It's not hard to see the appeal the trend holds for some consumers. Li Kun, a resident in Beijing eyeing a model by Chinese electric vehicle maker XPeng, said he was immediately hooked after a salesperson called him about new subsidies. "The harder the manufacturers compete, the better it is for the buyers," Li said. "Compete however you want!" But timing a purchase can feel like a gamble if prices drop afterward, said Yu Peng, a Beijing resident planning to upgrade his car. "As a consumer, all you can do is quietly accept it," he said. Still, he shrugged it off with a Chinese saying: "Buy early, enjoy early." But cutthroat competition comes with hidden costs. Some buyers in China acknowledged that safety and quality can suffer when automakers cut corners to stay cheap, citing issues with recalls and assisted-driving features that received low scores And Beijing is now concerned that price wars don't just hurt companies and suppliers but also wages, tax revenues and the entire economy. In recent weeks, China's state media has stepped up criticism of the price wars. This month, Qiushi, a Chinese Communist Party publication, warned that the race to the bottom could force companies to slash essential production cost and compromise on quality, "causing 'bad money to drive out good' and ultimately harming consumer interests." The commentary also slammed some local governments for offering unfair incentives. On Wednesday, China's Cabinet vowed to regulate what it called "irrational" competition through tighter checks on costs and prices, and by steering the contest from being about who's cheaper to who has better tech and caliber. For now, maintaining market share remains a priority for many carmakers, analysts say. With the market saturated with many brands and similar models, carmakers that don't want to lose market share are of the view that the only way to survive in the short term is lowering prices, said Felipe Munoz, an automotive analyst at Jato. Jim Ma, sales manager at Chinese-Swedish carmaker Lynk & Co, said the company isn't focused on short-term profits but on building loyalty over time. Its new plug-in hybrid features a mini fridge, rotating seats and an LED message strip. The competition has made buyers more price-sensitive, but many value safety, customer support or specific designs such as in-car entertainment for children, he added. "Our pricing policy is meant to make customers like and choose our brand," said Ma. "In the long run, when they need after-sales services or decide to replace or buy a new car, we hope they'll still choose us." The ripple effects of China's pricing battles are being felt abroad too — in varied ways. Some consumers outside China welcome the shake-up that forces automakers globally to offer better products. Julia Poliscanova, senior director for vehicles at advocacy group Transport and Environment, said Chinese EVs helped fill the gap left by slow-moving European brands. While they aren't as cheap in Europe as they are in China, their prices are often still slightly lower, or they offer better range or software at the same price, she said. But politics are also at play as Europe negotiates tariffs and minimum pricing on EVs with China. A key question, she said, is how to encourage Chinese car and battery makers to localize their supply chains in Europe to build up domestic industries — just as Japanese and Korean brands did decades ago. Efforts are already underway at some Chinese companies, particularly for Europe's small-car market. While consumers in Europe generally care more about quality than a carmaker's origin, they also worry about broader economic impacts, said Poliscanova. "They just want to make sure that this does not result in, for example, their neighbor or someone in a nearby village losing their job," she said. Ford and Volvo Cars are among the automakers cutting jobs in Europe in recent months, driven in part by growing competition with Chinese rivals.
India Today
04-06-2025
- Entertainment
- India Today
Nothing CEO Carl Pei says Indian food tastes better in London, sparks debate
Nothing CEO Carl Pei stirred the internet with his bold take on Indian cuisine as he claimed that Indian food in London tastes better than in India. As expected, it didn't sit well with a section of the internet. Carl Pei, the Chinese-Swedish entrepreneur behind tech brands Nothing and OnePlus, dined at a Michelin-starred Indian restaurant in London and shared his review online. But instead of just posting a picture, he delivered a 'hot take' that set X on take: Indian food in London is better than Indian food in India,' Pei said in a now-viral post on X, pairing the comment with a photo of his meal. The remark, predictably, didn't go down well with Indian users, who were quick to clap back in the comments a look at the post here: The 35-year-old founder revealed that he had dined at Jamavar, an upscale restaurant in Mayfair that belongs to The Leela Group. The fine-dining spot, described as a culinary jewel, is known for serving refined Indian dishes with a luxurious had visited India earlier this year for the CMF Phone 2 Pro launch, so the claim felt even more personal to his Indian followers. advertisement View this post on Instagram A post shared by Carl Pei (@getpeid)While several users understood that his opinion might stem from taste preferences, especially around spice levels, many weren't ready to let him off that easily.'NOTHING you said makes sense,' said a user as they cleverly played on the name of Pei's company. Another user explained, 'It's because non-Indians are the target market for westernised Indian food.'Several users did agree with Pei's point, to an extent. Investor Sheel Mohnot said that Indian food in London is good, but quite different. Another user added, 'Rather than a 'hot take', it's actually a 'mild take'. Most non-Indians prefer milder spice levels.'On the other side of the spice spectrum, a few users insisted Pei simply hadn't explored India's true culinary gems. 'It seems you haven't been to the right places for good food in India,' one X user wrote as they said his experience might've been the comments here: Carl Pei's post turned into more than a dinner update, it turned into a full-blown flavour war. While the verdict on the best Indian food remains divided, one thing's clear: when it comes to cuisine, Indians take their masala and opinions Watch
Hindustan Times
04-06-2025
- Entertainment
- Hindustan Times
Nothing CEO Carl Pei enjoys Indian food in London, says it's better than…
Nothing CEO Carl Pei recently enjoyed Indian food at a Michelin-star restaurant in London. While sharing a picture of his meal on social media, the Chinese-Swedish entrepreneur also shared a polarising take on Indian food. His post has sparked a debate on X. Carl Pei, CEO of Nothing and co-founder of OnePlus, said that Indian food in London is better than Indian food in India. 'Hot take: Indian food in London is better than Indian food in India,' the 35-year-old entrepreneur wrote on X. Pei had visited India in April this year for the launch event of CMF Phone 2 Pro. His use of the words 'hot take' indicates that he already knew his post would prove to be provocative - and he was right. Social media users were quick to denounce Pei's take on Indian food. Many Indians said he was 'wrong' for saying that Indian food in London is better than Indian food in India. Others, however, conceded that foreigners may find Indian food in London more palatable due to lower spice levels. 'Rather than 'Hot take', it's actually a 'Mild take'. Most non-Indians think London's Indian food is better because the spice level is mild which suits them,' wrote X user Shantanu. 'It seems you haven't been to the right places for good food in India,' another X user countered. 'NOTHING you said makes sense,' one person quipped. 'It's because non-Indians are the target market for westernized Indian food,' one commenter said by way of explanation. In the comments section, Carl Pei revealed that he ate at Jamavar restaurant in London, which is part of the Leela Group. Jamavar is a Michelin star restaurant in the upmarket Mayfair neighbourhood. This Indian fine dining restaurant is described as the 'culinary jewel of The Leela Palaces, Hotels & Resorts'.
