On the evening of July 18th, Lotus Group CEO Feng Qingfeng posted on social media that the essence of a price war is to exchange price for volume and market share in a short period of time, in order to solve the current crisis of the enterprise. It seems that this solution where the transaction price is lower than the cost price is a panacea for increasing sales. In fact, based on the bold price reductions of some brands, exchanging price for quantity did not meet expectations, and sales even declined. The factors that ultimately determine a customer's decision are not only price, but also brand strength, product strength, and the emotional value they provide to the customer. So you can see that some brands are not fully committed to improving their product strength, but instead risk their own lives to exchange price for quantity, resulting in broken products and ultimately damaging the brand. They have not received good reviews and reputation in the market. From the beginning, we have stated that Lotus will never join the price war, and this insistence remains unchanged.