China's national planning department said in a statement on Monday that the price war between manufacturers of pure electric models and plug-in hybrid vehicles is expected to intensify further this year due to oversupply and other issues, Zhidian Mobility has learned. The National Development and Reform Commission predicts that among the 150 new models launched this year, more than 110 new energy models will be launched, and the competition will once again intensify.
The NDRC also expects market demand for new energy vehicles (including electric vehicles and plug-in hybrid vehicles) to grow by 2.1 million units this year, but BYD, AITO and Li Auto, the three major new energy vehicle brands, plan to increase deliveries by 2.3 million units in 2024, indicating an oversupply.
According to the National Development and Reform Commission, the decline in battery costs and economies of scale will be the other two main reasons for the price reduction of new energy vehicles, this year in the southern city of Shenzhen, where the penetration rate of electric vehicles is high, the price reduction of new energy vehicles will be between 5% and 10%. Among them, the price reduction range is mainly BYD and Denza brand models, and the prices of five models in April decreased by 7.15%-9.7% compared with the beginning of the year.