The market for electric cars and plug-in hybrids is expected to see a price war this year, as manufacturers are set to launch 150 new car models. While over 110 of these models will be powered by new energy sources (NEV), the demand for electric vehicles and plug-in hybrids is projected to rise by just 2.1 million vehicles. This increase in supply will lead to competition, as announced by the National Development and Reform Commission (NDRC).
In order to attract customers amidst this oversupply, manufacturers are likely to 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. Despite these efforts, it remains uncertain whether the market can sustain such an increase in supply without leading to a price war between manufacturers.
