Avita Technology Addresses Industry Challenges at Forum in Shanghai

At the "Brand Building and Long-termism" forum held on July 11, 2025, in Jiading, Shanghai, Avita Technology President Chen Zhuo confronted the industry's challenges, elaborating on the severe trials facing the Chinese automotive market and outlining strategies for overcoming them. The current automotive market in China is experiencing an unprecedentedly complex environment characterized by rapid technological iterations, evolving consumer demands, increasing regulatory pressures, and fluctuating subsidy policies, which force companies into a state of frantic competition. More critically, the industry is mired in a vicious cycle of 'involutionary' competition—endless price wars, homogeneous product competition, and extreme traffic battles that not only harm healthy business operations but also threaten the sustainable growth of the industry. Chen likened this competitive landscape to a marathon where a sudden 100-meter sprint elimination round is introduced. In the face of such challenges, Chen emphasized that companies must possess three key capabilities. The first is rapid market responsiveness, which requires abandoning traditional fixed platform planning in favor of a 'hit product mentality.' By maintaining a rich development bandwidth and diverse configuration combinations, companies can achieve flexible product switching and quick market validation, significantly increasing success rates and marking a turning point in business quality. Secondly, companies must exhibit excellent short-term execution capabilities, shifting marketing models from 'static warfare' to 'mobile warfare,' transforming one-way pushes into two-way interactions. This involves releasing content in phases and continuously interacting with users to lower user acquisition costs while also facilitating genuine feedback. Thirdly, companies need dynamic evaluation and validation capabilities, moving away from the fixed rhythm of product launches. As automobiles increasingly incorporate consumer electronic attributes, businesses must establish mechanisms for immediate user feedback response and rapid iteration of currently sold products, which will be crucial for future competitive success. Avita has already laid out specific paths for adhering to long-termism. Chen noted that Avita emphasizes originality and places design at a strategic height, gathering a team of nearly 200 designers from 25 countries in Munich, Germany. In user research, over 50% identified design, intelligence, and safety as core factors in their purchasing decisions. In terms of intelligence, Avita promotes open innovation and collaborates with leading industry players like Huawei and CATL to construct comprehensive intelligent solutions. Driven by user needs, Avita continues to invest in self-research and innovation, launching technologies such as the "Taihang Smart Control Chassis" and "Kunlun Smart Journey." Moreover, Avita engages in two-way communication through user feedback to rapidly iterate and resolve product detail issues like sound systems, seating, and chassis tuning, even introducing a user co-creation design process. Talent is crucial for businesses, and a diverse, international team is a core asset. Chen stated that Avita focuses on employee development and growth, fostering a passion and pride for innovation among employees. This enthusiasm translates into products and establishes a deep emotional connection with users that transcends rational value, representing a long-term approach to brand power.