Shenzhen’s Electric Car Market Heats Up with Price Wars and Discounts Amidst Anticipated Oversupply
The Chinese market is expected to see another price war between electric car and plug-in hybrid producers this year due to an anticipated oversupply. The National Development and Reform Commission (NDRC) announced that manufacturers will be launching 150 new car models, with over 110 of them being powered by new energy sources (NEV). These sources include batteries and the combination of fossil fuels and electricity in plug-in models.
The demand for electric vehicles and plug-in hybrids is expected to increase by 2.1 million vehicles, but leading brands like BYD, Aito, and Li Auto are planning to increase deliveries by 2.3 million vehicles, resulting in an excess supply in the market. This oversupply will likely result in manufacturers trying to attract customers with reduced prices.
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. Companies like BYD, Denza, and Li Auto are leading the way by offering discounts of 7.15 to 9.7 percent compared to the beginning of the year, according to the NDRC. This competitive pricing strategy is aimed at stimulating demand in a market flooded with new electric car options.
