The Chinese market for electric cars and plug-in hybrids is expected to see an oversupply this year, leading to a price war between manufacturers, according to the National Development and Reform Commission (NDRC). This is due to the fact that 150 new car models are set to be launched, with over 110 of them powered by new energy sources (NEV), including 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 increase by 2.1 million vehicles, but leading brands like BYD, Aito, and Li Auto are planning to deliver 2.3 million vehicles, resulting in an excess supply in the market. This surplus is likely to prompt manufacturers to try and attract customers with reduced prices.
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 aims to stimulate demand in a market flooded with new electric car options.
The NDRC has stated that it will closely monitor the market conditions and take measures as necessary to maintain stability in the industry. Manufacturers are expected to continue competing fiercely for market share as they seek