China’s Xpeng hikes price of cars following Tesla and other EV makers as raw material costs rise

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A Xpeng P7 electric car is on display during the 18th Guangzhou International Automobile Exhibition at China Import and Export Fair Complex on November 20, 2020 in Guangzhou, Guangdong Province of China.
VCG | Visual China Group | Getty Images

Chinese electric vehicle maker Xpeng will hike the price of its cars citing a sharp rise in the cost of raw materials.

Xpeng said from Mar. 21, price increases on its vehicles will range from 10,100 Chinese yuan ($1,587) to 20,000 yuan before subsidies. The company did not give a breakdown of the specific price rises for each of its models.

Xpeng currently sells the flagship P7 sedan, the P5 sedan and the G3 sports utility vehicle. It is gearing up to launch the G9 SUV later this year.

Electric carmakers have been struggling with rising costs of raw materials such as nickel, which is a key component of batteries. Other components such as semiconductors continue to be in short supply, providing another headwind for Xpeng and its rivals such as Nio.

Xpeng is not the first electric vehicle company to raise prices. Over the last week, Tesla has done several price hikes across various models of its cars.

Earlier this week, Warren Buffett-backed automaker BYD also raised the prices of its new energy vehicles, which includes electric cars.

Technology

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