Within a week, at least 7 car companies raised prices for their new energy vehicles.
On the evening of March 19, WM Motor issued an announcement that due to the continuous sharp rise in raw material prices and the tight supply of suppliers, WM Automobile will adjust the price of models on sale, and the price will be raised by 7,000-26,000 yuan after comprehensive subsidies. The price adjustment will take effect from 00:00 on March 28, and users who have completed the deposit payment before that time will not be affected by the price adjustment.
At least 7 car companies announced price increases within a week
According to the incomplete statistics of the surging news, this is the 7th new energy vehicle company that has officially announced a price increase within a week.
On March 18 alone, Xiaopeng Motors, Geely's Geometry Cars, and Zero-Run Cars issued price increase notices.
Among them, Xiaopeng Automobile announced that affected by the continuous sharp rise in the price of upstream raw materials, Xiaopeng Automobile will adjust the price of the models on sale, and the increase in the price before the subsidy is 10100-20000 yuan. The price adjustment will take effect from 00:00 on March 21.
Geely's geometry car said in the announcement that due to the comprehensive factors such as the rise in raw material prices, geometry automobile will adjust the official guidance price of its geometry APro, geometric C and EX3, with an increase range of 3000-7000 yuan. The price adjustment took effect from 00:00 on March 19.
Zero-running cars said that due to the sharp rise in raw material prices and the decline of national subsidies, zero-running cars will adjust the official guidance price after subsidies for all C11 models, and the specific price can be viewed on the official website of the zero-running APP or zero-running cars. The price adjustment is effective at 00:00 on March 19, 2022. The price information on the official website shows that the price increase of the zero-run C11 is as high as 20,000-30,000 yuan.
It is worth noting that the previous zero-run C11 subsidy after the price of 159,800 to 199,800 yuan, 20,000-30,000 yuan price increase means that the increase is more than 12%.
In the previous few days, Nezha, BYD, and Tesla have successively announced price increases.
On March 17, Nezha Automobile announced that it would raise the price of all models by 3,000-5,000 yuan from the 18th; on March 15, BYD issued an announcement announcing the adjustment of the official guidance price of the relevant new energy models in the "Dynasty" and "Ocean" sales networks, ranging from 3,000-6,000 yuan; Tesla even increased the Model 3 rear-wheel drive version, high-performance version and Model Y long-range version, high-performance version and Model on March 15 and March 17 The Y rear wheel drive version "takes turns" to adjust the price, with an increase of 14,000-20,000 yuan.
The soaring price of raw materials has put pressure on car companies
According to the announcements of various car companies, the source of this round of price increases points to "the continuous sharp rise in raw material prices".
On the evening of March 19, Ideal Auto CEO Li Xiang posted on Weibo that the price increase of this round of new energy vehicles is mainly due to "the increase in battery costs is very outrageous", and there will be car companies announcing price increases.
He said in Weibo, "At present, brands that have contracted with battery manufacturers to determine the price increase of batteries in the second quarter have basically announced price increases immediately." If there is no price increase, most of them have not yet been negotiated, and the price will generally increase immediately after the negotiation. The increase in battery costs in the second quarter was very outrageous. War, politics, and the pandemic have made it possible to appreciate the value of buying a car, and the price of used cars in the United States has risen by 30% overall. ”
Previously, Dong Yudong, CEO of the Euler brand under Great Wall Motor, also posted that with the soaring price of raw materials, the Euler brand has brought huge losses to the company. Taking black cat as an example, after the sharp rise in raw material prices in 2022, the loss of black cats has exceeded 10,000 yuan.
It is reported that the cost of power batteries accounts for as much as 30%-40% of the total cost of electric vehicles. A recent research report by Huaan Securities shows that the price of lithium, cobalt, nickel and cathode material raw materials upstream of power batteries continues to rise. In the second week of March, raw materials such as lithium, nickel and cobalt continued to rise, boosting the price of lithium battery cathode material lithium iron phosphate by 3.7% week-on-week and ternary materials by 8% week-on-week.
Guotai Junan Securities pointed out in a recent research report that the impact of cost pressures such as the decline in subsidies for new energy vehicles and the rise in resource prices is still relatively controllable on the new energy market. The research report believes that in the context of the continuous high demand for terminal new energy, with the gradual easing of the supply of automotive chips on the supply side, the successive launch of heavy models by traditional car companies and new forces, and the further improvement of the new energy driving experience under the background of intelligence, it is expected that the sales of new energy vehicles in mainland China are still expected to reach 5.5 million in 2022, continuing to maintain more than 50% growth.
Guosheng Securities said that due to various unfavorable factors, the supply of core components of new energy vehicles is tight, the price of raw materials continues to rise, and the pressure on the industrial chain is obvious. However, the policy emphasis on supply chain security and the continued support for the consumption of new energy vehicles will help the recovery of the new energy vehicle industry chain.
According to the Passenger Car Market Information Joint Meeting, the retail sales of new energy vehicles nationwide in February were 272,000 units, an increase of 180.5% year-on-year and a decrease of 22.6% month-on-month. The retail penetration rate of new energy vehicles reached 21.8% in February, an increase of 13 percentage points from the 8.1% penetration rate in February 2021.