City celebrated Manuel Pellegrini's first season as manager with a double of the Premier League and League Cup in the 2013-14 campaign.
They failed to match the same standard last term and finished eight points adrift of Chelsea but, speaking ahead of their league opener at West Brom on Monday, Demichelis is confident of returning to the top of the pile.
Speaking to Sky Sports, the Argentinian said: "There are tough teams every year involved in the fight and what we want to do is beat them so we know that teams such as Chelsea, United and Arsenal are going to be there."
"We will fight against them and our intention is to win, yes, we are favourites."
Demichelis, who penned a one-year contract extension in March, says the whole team is desperate to be more consistent this term.
"We left in a way we didn't like, we could have made it, we weren't as regular as we were in the previous season," the 34-year-old added.
"We have the quality and we are a good squad and we want to bring all this energy back onto the pitch this season."
