(Yicai Global) May 20 -- Nio, SAIC-Volkswagen Automotive and other Chinese electric car manufacturers are raising their prices again, after two previous price hikes already this year, to cope with the surging cost of raw materials.
The price of Nio’s electric sedan the ET7 will jump by CNY10,000 (USD1,500) from May 23, and SAIC-Volkswagen, the joint venture between Chinese auto giant SAIC and Germany’s Volkswagen Group, already increased its prices by between CNY3,000 (USD450 and CNY5,000 on May 11.
FAW-Volkswagen Automobile, the JV between Wolfsburg-based Volkwagen and China’s FAW Group, said the price of its ID.4 CROZZ and ID.6 CROZZ models will be upwardly revised on May 23, without saying by how much.
Geely Auto Group’s EV marque Zeeker and Guangzhou-based Xpeng Motors have done away with some discounts which is the equivalent of a price hike.
US electric car startup Tesla, Shenzhen-based BYD and Xpeng were the first to increase prices this year, mainly due to the phasing out of government subsidies for new energy vehicles, market insiders said. Then in March there was another round of price hikes led by Great Wall Motor’s ORA, SAIC’s Roewe and other marques due to the increase in the cost of battery raw materials.
The cost of batteries and the raw materials needed to make them are extremely high right now and are expected to stay high all year, although they should return to a more rational level in the future, said Shen Yanan, president of NEV manufacturer Li Auto.
Battery makers are negotiating with vehicle manufacturers to share the additional costs. Contemporary Amperex Technology said earlier this month that the Ningde, southeastern Fujian province-based battery giant had finished negotiations with clients about price adjustments and that the new prices will come into effect this quarter.
Sales of new energy passenger vehicles rose by 50.1 percent in April from the year before to 280,000 units despite the price hikes and the impact of the recent Covid-19 outbreaks, according to the China Passenger Car Association.
Editors: Zhang Yushuo, Kim Taylor