I didn't feel bad for them last time since they were trying to drum up business through scare tactics, but this time they legitimately made a good product and tried to sell it normally only to be beat out by better tech
Not even better tech, aside maybe from the shock-absorber. MC's party made his carriage out of fucking mithril and requires a master artisan to assemble, bloated with feature creep and over-engineered to the nines. The other guys made something that was actually well-engineered to the parameters of the task at hand and economically feasible.
But MC has a duplication glitch, so he gets to be gaudy and impractical as he wants.
The funny thing is, honestly, if I were the elves, I might take the other guys' carriage. "We'll give you the precious metals for half-off" raises all sorts of red flags, and raises questions of how you continue production if your supplier subsequently backs out. I guess I might take MC's contract just to learn the tech, though, even if I were suspicious of where it came from.
But yeah. At the end of the day, he seems to be putting the honest and hardworking engineers who made this (who are presumably not the salesmen themselves) out of work. And he doesn't even really need the money from this himself. It all feels a bit bad!