Chinese authorities expect a fiercer price war among electric car and plug-in hybrid manufacturers this year as supply is expected to outstrip expected demand.
Manufacturers will launch 150 new models in 2024, including more than 110 electric or plug-in hybrid models, resulting in fierce competition, the National Development and Reform Commission (NDRC) announced on Monday.
Demand for electric vehicles and plug-in hybrids is expected to grow by 2.1 million vehicles, but the three leading brands of small electric cars with speeds below 40 kilometers per hour, BYD, Aito and Li Auto, plan to increase deliveries by 2 3 million vehicles, the commission notes, which indicates an excessive supply.
The war with sales promotions and incentives begins
In such conditions, manufacturers will try to attract customers with reduced prices, with the additional incentive of lower battery costs, so discounts in Shenzhen, a metropolis that largely accepts electric vehicles, will range from five to ten percent, the NDRC said.
The biggest discounts are offered by BYD and Denza, whose vehicles are 7.15 to 9.7 percent cheaper in April compared to the beginning of the year, according to NDRC, followed by Li Auto.
Tags: supply competition stronger Chinese announcing fierce price war
