EV Price Hikes Hit Amid Chip Shortages and Soaring Raw Material Costs

Recently, China's new energy vehicle (NEV) market has seen a wave of price hikes. Chery’s Exeed ET5 high-end variant increased its price by RMB 5,000 starting March 21, and its previously complimentary intelligent driving package is now offered as a RMB 5,000 optional upgrade. FAW Bestune’s Yueyi 03 mid- and high-end trims saw price increases of RMB 2,000 and RMB 5,000 respectively, accompanied by added features. Zeekr’s newly launched 007 GT model may also undergo a price adjustment soon. The primary drivers behind this round of price increases include rising raw material costs: battery-grade lithium carbonate prices have surged from RMB 75,000 to RMB 170,000 per ton, while prices of metals like copper and aluminum have also climbed significantly. Additionally, automotive-grade chip costs have spiked—particularly DDR5 memory for vehicles, which has surged by 300% since the second half of 2025 due to capacity being diverted to meet booming AI industry demand. Compounded by global supply chain volatility and growing NEV production volumes, these factors have exacerbated supply-demand imbalances, prompting automakers to raise vehicle prices.