SHANGHAI, April 22 (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 ( 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 ( LI ) cut prices on four of its models, following the

moves by Tesla and BYD.