Over 15 EV Makers Raise Prices Amid Rising Memory Chip Costs

Since March 2025, more than 15 new energy vehicle (NEV) manufacturers have announced price increases for certain models or reductions in terminal discounts, with most hikes ranging from RMB 2,000 to RMB 10,000. The official guide price of Changan Qiyuan Q07 Tianshu Intelligent Laser Edition will increase by RMB 3,000 effective May 7, 2025. A major automaker announced on April 28 that the optional pricing for the LiDAR-equipped advanced driver-assistance system (ADAS) package on select models would rise from RMB 9,900 to RMB 12,000, effective May 1, 2026; customers who paid deposits prior to this adjustment will be unaffected. EXEED, a premium brand under Chery, was the first to announce a price hike on March 5, 2025, raising the price of the EXEED ET5 210 LiDAR Ultra Smart Edition by RMB 5,000 to RMB 164,900 after the adjustment. Additionally, all Xiaomi SU7 variants saw a uniform RMB 4,000 price increase, while multiple Hongmeng Intelligent Mobility models also raised prices in tandem with upgrades to their LiDAR configurations. This round of price increases is primarily driven by a sharp rise in memory chip costs. Starting in Q3 2025, the memory chip market entered a “super cycle,” with prices surging rapidly. According to TrendForce data, contract prices for mainstream DRAM rose 93%–98% quarter-over-quarter in Q1 2026, and are projected to climb another 58%–63% in Q2 2026. As vehicles become increasingly intelligent—with widespread adoption of smart ADAS and intelligent cockpit features—the demand for memory chips has grown substantially. Memory capacity in vehicles priced around RMB 200,000 has increased from 8–12 GB two years ago to over 100 GB today, with some models reaching 200 GB. Smart ADAS systems exhibit particularly acute demand for memory chips, predominantly using low-power LPDDR memory. With large AI models being deployed in vehicles, LPDDR bandwidth could become a computational bottleneck; shifting to higher-specification memory solutions would further escalate costs. Beyond rising prices, some automakers are also grappling with supply shortages and difficulties securing inventory. Given that the automotive sector accounts for a relatively small share of total memory chip demand, automakers have limited bargaining power, and cost pressures are gradually being passed down to OEMs. Meanwhile, profit margins across the auto industry remain under severe pressure. The industry’s sales profit margin stood at just 4.1% in 2025 and further declined to 2.9% in the first two months of 2026. Compounded by the expiration of the NEV purchase tax exemption policy at the end of 2025 and reduced subsidies for trade-in programs in 2026, consumer demand has been pulled forward, leaving the overall market sluggish. Against this backdrop, automakers find it difficult to absorb upstream cost increases on their own, making price hikes at the retail level a common and necessary response.