Due to an expected oversupply in the market, Chinese authorities anticipate another price war between electric car and plug-in hybrid producers this year. The National Development and Reform Commission (NDRC) announced that manufacturers will be launching 150 new car models, with over 110 of them being powered by new energy sources (NEV). These sources include batteries and the combination of fossil fuels and electricity in plug-in models.
In response to the market conditions, manufacturers in Shenzhen, a city known for its acceptance of electric vehicles, are offering discounts ranging from five to ten percent. Companies like BYD, Denza, and Li Auto are leading the way by offering discounts of 7.15 to 9.7 percent compared to the beginning of the year, according to the NDRC. This competitive pricing strategy is aimed at stimulating demand in a market flooded with new electric car options.
The demand for electric vehicles and plug-in hybrids is expected to increase by 2.1 million vehicles this year, but leading brands like BYD, Aito, and Li Auto are planning to increase deliveries by 2.3 million vehicles. This oversupply will likely result in manufacturers trying to attract customers with reduced prices. Despite this trend towards lower prices, experts predict that China’s electric vehicle market will continue to grow due to its favorable government policies and increasing awareness of environmental issues among consumers.