China's state planner warns intensified EV price war on oversupply
Reuters
Published Apr 22, 2024 03:44
Updated Apr 22, 2024 11:11
SHANGHAI (Reuters) - China's state planner expects an intensified price war among automakers of electric cars and plug-in hybrids this year because of overhanging supply, among other issues, the government body said in a statement on Monday.
The National Development and Reform Commission (NDRC) expected more than 110 new energy vehicle models among a total of 150 new cars launched this year, intensifying competition.
NDRC also estimated the market demand for new energy vehicles, including EVs and plug-in hybrids, to grow 2.1 million units this year, but BYD , Aito and Li Auto (NASDAQ:LI), the three top NEV brands, had planned increase deliveries by 2.3 million units for 2024, signaling oversupply.
Falling battery costs and economies of scale will be the other two main reasons for price cuts in NEVs, which will range from 5% to 10% this year in the southern city of Shenzhen, a metropolis with high EV adoption, NDRC said.
BYD and Denza cars have been leading the price cuts with reductions of 7.15% to 9.7% to the prices of five models in April compared with those at the beginning of the year, according to NDRC.
Li Auto cut prices on four of its models, following the moves by Tesla (NASDAQ:TSLA) and BYD.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.