Within a week, at least seven auto companies raised the price of their new energy vehicles.
On March 19, Weima automobile announced that affected by the continuous sharp rise in the price of raw materials and the tight supply of suppliers, Weima automobile will adjust the price of models on sale. After the comprehensive subsidy, the price increase range is 70 Lingyi Itech (Guangdong) Company(002600) 0 yuan. The price adjustment will take effect from 0:00 on March 28. Users who have paid the deposit before will not be affected by the price adjustment.
within one week, at least 7 auto companies officially announced price increases
According to incomplete statistics of surging news, this is the seventh new energy vehicle enterprise that officially announced price increases in a week.
On March 18 alone, Xiaopeng automobile, Geely’s geometric automobile and Zero run automobile 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 car type sold, and the increase range of the price before the subsidy is 1010020000 yuan. The price adjustment will take effect from 0:00 on March 21.
Geely’s geometric automobile said in the announcement that affected by comprehensive factors such as rising raw material prices, geometric automobile will adjust the official guidance prices of its geometric APRO, geometric C and EX3, with an increase range of 3 Jiangnan Mould & Plastic Technology Co.Ltd(000700) 0 yuan. The price adjustment came into effect at 0:00 on March 19.
Zero run automobile said that due to the sharp rise in the price of raw materials and the decline of national subsidies, Zero run automobile will adjust the official guidance price after subsidies for all C11 models. Please check the specific price in Zero run app or Zero run automobile official website. The price adjustment will take effect at 0:00 on March 19, 2022. The price information on the official website shows that the price increase of C11 is as high as 2 Fawer Automotive Parts Limited Company(000030) 000 yuan.
It is worth noting that after the previous Zero run C11 subsidy, the selling price was between 159800 and 198800, and the price increase of 2 Fawer Automotive Parts Limited Company(000030) 000 yuan means an increase of more than 12%.
In the previous few days, Nezha, Byd Company Limited(002594) , Tesla successively announced price increases.
On March 17, Nezha automobile announced that it would raise the price of all models by Dingli Corp.Ltd(300050) 00 yuan from March 18; On March 15, Byd Company Limited(002594) issued an announcement announcing the adjustment of the official guidance price of relevant new energy models in the two sales networks of “Dynasty” and “ocean”, with an increase range of 3 Jointo Energy Investment Co.Ltd.Hebei(000600) 0 yuan; Tesla also adjusted the price of model 3 rear wheel drive version, high-performance version, model y long endurance, high-performance version and model y rear wheel drive version in turns on March 15 and March 17, with an increase of 1400020000 yuan.
raw material prices soared, causing pressure on auto enterprises
According to the announcement of various automobile enterprises, the source of this round of price rise points to the “continuous sharp rise in raw material prices”.
On March 19, ideal car CEO Li Xiang posted a microblog saying that the current round of new energy vehicle price increase is mainly due to “the range of battery cost rise is very unreasonable”, and some car companies will announce the price increase.
He said on his microblog, “At present, the brands that have contracted with battery manufacturers to determine the price increase of batteries in the second quarter have basically announced the price increase immediately. For those that have not yet increased the price, most of them have not been negotiated about the price increase, and generally will increase the price immediately after negotiation. The increase of battery cost in the second quarter is very outrageous. War, politics and epidemic have allowed car purchase to appreciate, and the overall price of used cars in the United States has increased by 30%.”
Previously, Dong Yudong, CEO of the Euler brand of Great Wall Motor Company Limited(601633) company, also sent a document saying that with the soaring price of raw materials, the Euler brand has brought huge losses to the company. Take black cat as an example. After the sharp rise in the price of raw materials in 2022, the single loss of black cat has exceeded 10000 yuan.
It is reported that the cost of power battery accounts for 30% – 40% of the total cost of electric vehicles Huaan Securities Co.Ltd(600909) a recent research report shows that the prices of lithium cobalt nickel and cathode materials in the upstream of power battery continue to rise. In the second week of March, lithium, nickel, cobalt and other raw materials continued to rise, boosting the price of lithium iron phosphate, the cathode material of lithium battery, to rise by 3.7% on a weekly basis, and the average weekly basis of ternary materials to rise by 8%.
Guotai Junan Securities Co.Ltd(601211) Securities pointed out in a recent research report that the impact of cost pressures such as declining subsidies for new energy vehicles and rising resource prices on the new energy market is still relatively controllable. The research report believes that under the background of the continuous high demand for new energy at the terminal, with the gradual easing of the supply of automobile chips at the supply end, the successive launch of heavy models of traditional automobile enterprises and new forces, and the further improvement of the sense of new energy driving experience under the background of intelligence, it is expected that the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles is still expected to reach 5.5 million in the middle of 2022, continuing to maintain an increase of more than 50%.
Guosheng Securities said that disturbed by various adverse factors, the supply of core parts 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 emphasizes the supply chain guarantee and continues to support the consumption of new energy vehicles, which will contribute to the recovery of the new energy vehicle industry chain.
According to the passenger car market information joint meeting, the retail sales volume of Shanxi Guoxin Energy Corporation Limited(600617) cars in February was 272000, 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, 13 percentage points higher than the penetration rate of 8.1% in February 2021.
