Xiaomi, Chery and FAW have raised prices on their electric vehicles amid surging chip and raw material costs, a sharp departure from 2025's aggressive cuts, though analysts caution that weak demand could force reversals. The trend started earlier this month, with Xiaomi making the latest adjustment.
Xiaomi, Chery and FAW Bestune, three Chinese electric vehicle makers, have recently raised prices on their models due to surging supply chain costs, including raw materials like lithium carbonate and dynamic random access memory (DRAM) chips. This marks a sharp departure from the aggressive price cuts in 2025, which hurt profitability for carmakers and suppliers and drew regulatory scrutiny. Although these brands are not sold on a large scale, the increases signal a potential trend, though analysts note retail prices remain subject to actual demand. Xiaomi made the latest adjustment on March 19, announcing its new-generation SU7 standard version would start at 219,900 yuan (US$31,800), a 4,000 yuan increase from the previous model. Founder and CEO Lei Jun attributed the rise to aggressive surges in supply chain component prices. The trend began earlier this month. On March 10, Chery’s Exeed brand announced the high-end ET5 would see a 5,000 yuan price increase from March 21, with a smart driving package previously offered for free now costing an extra 5,000 yuan, for a total 10,000 yuan hike. On March 8, FAW Bestune launched the 2026 Bestune Yueyi 03 with price increases of 2,000 to 5,000 yuan for mid-to-high versions. “The rising costs of some raw materials like lithium carbonate and the surging prices of dynamic random access memory are forcing EV manufacturers to lift selling prices,” said Yale Zhang, managing director at Automotive Foresight in Shanghai. “More brands may follow suit, though the retail prices are still subject to actual demand.”