Yes, manufacturers want to cut costs to increase profit margins, but they would also be compelled to pass a portion of those cost reductions on to their customers or risk losing market share.
Consider the worldwide oil market. Once an oil well is sunk and all the parts installed, it is a robot. There is zero human labor involved even in maintenance, for years at a time. The only expenses are electricity, possible royalties to a property owner, and taxes. Electricity is dirt cheap, royalties are routinely cheated, and taxes are obviously avoided almost completely. So running an existing oil well is extremely cheap to do. So cheap that almost any price per barrel is profitable.
But when Saudi Arabia realized this and cranked up their production, driving oil prices down from $100/barrel to $40/barrel, what did other producers do? Even though they were still profitable, they still shut down their robots and stopped pumping oil. Were they unprofitable? No. Income minus operating expenses was still a positive number. It was just a much smaller number. So no, they do not pass on cost reductions to their customers. They prefer to lose market share if they don't get the amount of profit they believe they deserve.
The model of humans that economists use is completely and totally divorced from reality. Humans don't think the way economists say they do. Not even close.