The first quarter is not over, and new energy vehicles have risen twice in a row. In March this year, the price of new energy vehicles ushered in the second wave of price increases. Due to the impact of the sharp rise in raw material prices, many car companies have announced price adjustments for their new energy products. However, in a number of price increase explanations, Weilai made a different decision, it said that price stability is good for the interests of users and the market, and there is no intention of price increase in the short term. However, "the good times are not long", Weilai has not been able to withstand the pressure of material price increases after all, and recently announced a price increase.
On the afternoon of April 10, WEIO automobile announced on the social platform that due to the impact of rising global raw material prices, from May 10, 2022, WEIO will make appropriate adjustments to the prices of some of its products. The starting price of ES8, ES6 and EC6 models will be raised by 10,000 yuan, and the starting price of ET7 and ET5 will remain unchanged.
Weilai price increase announcement
In addition, choosing the battery rental service, the user service fee for long-lasting battery pack (100kWh) rented is adjusted to 1680 yuan / month, and the purchased car users are not affected by this adjustment. The battery pack is flexibly upgraded to a long-life battery pack on an annual basis, and the relevant price is adjusted to 9800 yuan / year.
However, consumers who pay ES8, ES6, EC6, ET7 deposits or ET5 reservation deposits before May 9, 2022 (inclusive), the purchase price and battery rental service fee will not be affected by this adjustment.
In this regard, Li Bin, CEO of Weilai Automobile, also said: "Raw materials, especially battery raw materials, have risen too much this year, and I have not seen a downward trend in the near future, I originally wanted to carry more, the epidemic is even more unbearable, the price increase is also forced, please understand." ”
How much impact will the price increase of materials have on car companies
Since entering 2022, the price of upstream materials such as power batteries has reached a new high. Due to the rising prices of upstream materials, the cost pressure of car companies to produce new energy vehicles is also increasing. Since the second half of March, car companies have announced price increases one after another.
On the evening of March 15, BYD officially announced that it would adjust the official guidance price of new energy models related to Dynasty Network and Ocean Network, ranging from 3,000 yuan to 6,000 yuan. On March 17, Tesla China officially adjusted the price of some models, which is the third time it has announced a price increase in seven days.
On March 18, Xiaopeng Automobile, Geely's geometry car, and zero-run cars issued price increase notices. Among them, Xiaopeng Automobile announced that the increase in the price before the car subsidy ranged from 10,100-20,000 yuan. Geometry Auto adjusts the official guidance price of its Geometry A Pro, Geometry C, and EX3, with an increase range of 3,000-7,000 yuan. Nezha Automobile also said that it would adjust the price of models on sale, ranging from 3,000 yuan to 5,000 yuan.
In the next few days, WM Motors, Lantu Cars, Jihu Cars, etc. also announced price adjustments. Up to now, nearly 20 new energy vehicle companies have issued price increase news, and the price increase ranges from 3,000 yuan to 20,000 yuan.
Car companies have announced price increases, and we can clearly feel this pressure is not ordinary. So, how much impact does the rise in raw material prices have on the cost of the whole vehicle or on the price of the whole vehicle?
In general, the cost of power batteries accounts for 30%-40% of the total cost of electric vehicles, so when the cost of batteries rises, the price of the whole vehicle rises by thousands of yuan or even tens of thousands of yuan. We know that the price of lithium has increased tenfold in more than a year from 50,000 yuan / ton at the beginning of 2021 to the current 500,000 yuan / ton. On March 18, the domestic price of lithium carbonate was reported at 504,000 yuan / ton, up 73.8% from the beginning of the year and up 479.3% year-on-year.
Taking bydi Han's standard version of the luxury car for example, its current price is 214,800 yuan, and the weight of the lithium salt needed is about 38.1 kg. According to the price of 500,000 yuan, lithium salt is about 8.8% of the sales price of the whole vehicle. Assuming that the price of lithium salt continues to rise, and then increase by 100,000 yuan to 600,000 yuan, then the manufacturing cost of the car will increase by about 5,000 yuan.
How long will the price boom last
In fact, we can see that the price increase announcement of car companies is not small, afraid of affecting the consumer's desire to shop, many big guys have explained that the price increase is forced, there is no way to do it. In this regard, many consumers who hover in front of the car shop said that how long will this wave of price increases last? Is it too late to buy a car now?
We know that the price increase is caused by the price increase of raw materials, and the current price of related raw materials has not slowed down or declined. Therefore, the current price reduction of new energy vehicles is unrealistic for the time being.
For price increases, industry insiders pointed out that the price increase of raw materials for new energy vehicles is a cyclical behavior, and the current general increase in car prices is also a reflection of the rise in raw material prices.
In addition, experts said that the current rapid growth of global demand for new energy vehicles has produced a progressive demand amplification effect in the field of batteries and materials, which is the main reason for the sharp rise in lithium carbonate prices since last year, and it is expected that the balance of supply and demand of lithium resources may return to normal after 2-3 years. Therefore, from the current point of view, as the market demand for electric vehicles increases, the rise in raw materials is unstoppable, so the price of new energy vehicles will still be affected by costs.
Of course, if you now have the idea of buying a car friends can also choose to sell immediately, raw material prices will not stop for a while and a half, and some car companies also give a buffer period, after all, buy early and enjoy early.
The whole army attacked
In the face of this possible long-term increase in the price of raw materials, car companies certainly cannot sit still. Blindly following the price increase will only hit the consumer's enthusiasm for shopping. For this situation, car companies may be able to find ways to solve it from the source. For example, to increase efforts to develop new power batteries, the material of the battery can be expanded to choose a range, not limited by a single material.
The innovation of power batteries can not only help car companies solve this cost increase crisis, but also allow car companies to have a longer-term development in the field of new energy.
Of course, in addition to the company itself to find a way, the government can also take corresponding measures to stabilize the market. At present, the global trade environment has deteriorated, and there will be unfair competition behaviors such as hoarding and price gouging in the market, in this regard, government departments should introduce relevant policies to crack down on hoarding, suppress short-term sharp fluctuations in prices, and ensure the stability of supply and price in the new energy automobile industry.
Write at the end
Although the price of raw materials shows a continuous upward trend, at present, the market demand side of new energy vehicles has not been affected by price increases, especially plug-in and mixed models. For example, Weilai delivered 9,985 new cars in March, an increase of 37.6% year-on-year; and delivered 25,800 new cars in the first quarter, an increase of 28.5% year-on-year. Today, the supply chain situation is still grim, but we can still optimistically look at the development of new energy vehicles this year, and in the difficult situation, we can also stimulate the greater potential of car companies and create more possibilities.