Competition takes other forms besides cutting prices. Many prefer to get their extra volume by special features, or extra service, etc. You don't see Mercedes, Jaguar, Lexus, Cadillac cutting prices to compete with Hyundais.
Moreover, many businessmen see profitable co-existence as being preferable to unprofitable cut-throat price competition.
Competition takes other forms besides cutting prices.These guys seem to think pricing is a race to the bottom. It doesn't work that way for most products.
The more players there are in the market, the lower prices will be. High end versions of products are the exception to the rule. Their selling point isn't price. For everyone else, price is determined by supply and demand. More supply lowers the price. More competitors offering more of the product equals lower price.
Well, d'uh. It's because they are not in the same market segment. But Chevrolet, Saturn, Toyota and Honda will certainly compete.