Struggling with a global shortage of semiconductors and a sharp increase in the cost of battery materials, an increasing number of Chinese automakers are raising prices for electric vehicles (EVs). Geely, BAIC, and Chery has become the latest companies to implement pricing changes, following BYD, Xpeng, Li Auto, and others.
Details: Chery Automobile, a manufacturing partner of Jaguar Land Rover, said Wednesday on its Weibo account that from April 7, price increases on its vehicles will range from RMB 2,900 to RMB 5,000 ($456 to $786), without giving a breakdown of the specific price increases for each of its models.
- This is the second time in less than a month that Chery has raised the prices of its vehicles. The previous markup on its entry-level EVs cost consumers as much as an extra RMB 7,100, according to figures released in a March 17 announcement (in Chinese).
- Huawei’s auto partner BAIC also announced Wednesday that it will raise prices across its entire line-up of Arcfox-branded EVs, including those equipped with Huawei’s advanced driver assistance systems, starting from May 1. The company stated that full details will be released later this month.
- Geely’s premium EV brand Zeekr has also followed suit with a price increase, according to an April 2 statement (in Chinese), citing a significant rise in the cost of raw materials.
Context: A surge in the cost of battery raw materials such as nickel, driven by an ongoing supply chain crunch and the Russia-Ukraine war, has triggered a series of price hikes throughout the Chinese auto industry over the past few weeks.
- Tesla lifted prices for its locally-made Model Y electric crossover twice in March, while more than 10 Chinese major car brands lifted their prices by between 1% and 15%, TechNode reported.
- Some EV makers could lower prices to maintain their sales targets if demand starts to weaken during the second half of this year, Credit Suisse analyst Wang Bin said during an online conference on March 22.
READ MORE: Drive I/O | Chinese EV makers face price hikes as nickel prices soar, Didi to enter EV market