Multiple NEV Makers Raise Prices on High-End Models and Option Packages Amid Cost Pressures and Shifting Strategies

In May 2026, multiple leading domestic new energy vehicle (NEV) manufacturers abandoned their previous price-war strategies and instead successively raised prices for high-end trims or optional intelligent driving packages. According to incomplete statistics, more than 15 automakers—including Tesla, Xiaomi, and several brands under Harmony Intelligent Mobility Alliance—have announced price hikes or reduced terminal discounts since the beginning of the year. Data shows that national passenger vehicle retail sales declined by 18.5% year-over-year in the first four months of 2026, with sales in the first 10 days of May falling another 21% compared to the same period last year. During the same timeframe, only 56 passenger vehicle models announced price cuts—12 fewer than in the same period of 2025. Among them, plug-in hybrid electric vehicles (PHEVs) saw price reductions on just nine models (down four from 2025), while battery electric vehicles (BEVs) had price cuts on 16 models (down 14 year-over-year). The price increases are primarily driven by multiple cost pressures. Battery-grade lithium carbonate prices rebounded from a low of around RMB 75,000 per ton in 2025 to over RMB 200,000 per ton by May 2026—a surge of more than 160%. A midsize electric vehicle typically uses 200 kg of aluminum and 80 kg of copper; with aluminum prices surpassing RMB 25,000 per ton and copper exceeding RMB 100,000 per ton in 2026, the metal material cost per vehicle has risen by approximately RMB 1,800. Additionally, storage chip costs for advanced intelligent driving systems have significantly increased, with some models now using over 100 GB of DRAM—contract prices for which doubled in Q1 2026. Notable price adjustments include: BYD raising the optional “Tianshen Zhiyan B” LiDAR package price by RMB 2,100 effective May 1; Changan’s Qiyuan Q07 Tianshu Intelligent LiDAR Edition increasing by RMB 3,000; and Avatr 12’s extended-range version seeing its pre-sale starting price rise by RMB 30,000 to RMB 299,900, while its BEV variant increased by RMB 20,000 to RMB 309,900. Some automakers, while not directly raising list prices, have effectively increased prices by scaling back incentives. For example, Leapmotor L80 adjusted its reservation deposit policy from RMB 2,000 off RMB 5,000 to RMB 1,000 off RMB 3,000, and Zeekr 001 discontinued its complimentary Eames recliner offer, making it a RMB 1,500 optional upgrade. Industry profitability remains under severe pressure. The automotive sector’s sales profit margin fell to 4.1% in 2025 and further declined to 3.2% in Q1 2026. Most listed automakers reported sharp drops in Q1 net profits, with BYD’s net profit down 55% year-over-year. Compounding the downturn are the phasing out of NEV purchase tax exemptions, reduced subsidies for trade-in programs, and demand pulled forward by a policy deadline rush at the end of 2025—all contributing to the market slump in 2026. On the consumer side, the effectiveness of price wars is waning. A McKinsey survey found that 22.2% of car buyers held negative views toward price wars, while only 16.5% viewed them positively. Consumers are increasingly prioritizing technological upgrades and total cost of ownership, with tech features receiving a positive impact score of 20.7%. Currently, intense competition persists in the sub-RMB 100,000 volume segment, but high-end and intelligent variants broadly face upward pricing pressure. This round of price adjustments is widely seen as a signal of the market’s shift from “low-price internal competition” to “value-based competition.”