The Chinese market for electric cars and plug-in hybrids is expected to experience another price war this year due to an anticipated oversupply of new energy vehicles (NEVs). In response, the National Development and Reform Commission (NDRC) announced that manufacturers will be launching a total of 150 new car models, with over 110 of them powered by NEVs. This includes battery-powered and hybrid models that combine fossil fuels and electricity.
Despite an expected increase in demand for electric vehicles and plug-in hybrids by 2.1 million vehicles, 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 oversupply is likely to lead manufacturers to resort to competitive pricing strategies in order to attract customers.
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 on their products. BYD, Denza, and Li Auto are among the companies leading the way with discounts of 7.15 to 9.7 percent compared to the beginning of the year, according to the NDRC. The competitive pricing strategy is aimed at stimulating demand in a market flooded with new electric car options.