The Chinese authorities are anticipating another price war between producers of electric cars and plug-in hybrids this year, as the supply is expected to exceed demand. Manufacturers are set to launch 150 new car models, with over 110 of them being powered by new energy sources (NEV). This increase in models will lead to competition, as announced by the National Development and Reform Commission (NDRC).
New energy sources include batteries and the combination of fossil fuels and electricity in plug-in models. The demand for electric vehicles and plug-in hybrids is projected to rise by 2.1 million vehicles. However, leading brands such as BYD, Aito, and Li Auto plan to increase deliveries by 2.3 million vehicles, suggesting an oversupply in the market.
To attract customers amidst this oversupply, manufacturers will resort to reducing prices. In Shenzhen, a city known for its acceptance of electric vehicles, discounts ranging from five to ten percent will be offered by manufacturers. Brands like BYD and Denza are already offering discounts of 7.15 to 9.7 percent compared to the beginning of the year, with Li Auto following suit.