The Chinese authorities expect another price war between the producers of electric cars and plug-in hybrids this year, since the supply should exceed the expected demand.
Manufacturers will launch 150 new car models on the market this year, including more than 110 models of vehicles powered by new energy sources (NEV), which will result in competition, the National Development and Reform Commission (NDRC) announced on Monday.
New energy sources include batteries and the combination of fossil fuels and electricity in plug-in models.
The demand for electric vehicles and plug-in hybrids should increase by 2.1 million vehicles, but the three leading brands of small electric vehicles whose speed does not exceed 40 kilometers per hour, BYD, Aito and Li Auto, they plan to increase deliveries by 2.3 million vehicles, the commission notes, which signals an excessive supply.
In such conditions, manufacturers will try to attract customers with reduced prices, with the additional incentive of lower battery costs and the principle of economy of scale, so they will discount in Shenzhen, a metropolis that largely acceptance of electric vehicles, range from five to ten percent, announced the NDRC.
The biggest discounts are offered by BYD and Denza, and their vehicles are 7.15 to 9.7 percent cheaper in April than at the beginning of the year, according to the NDRC, and Li Auto follows suit.