China's Automotive Industry Sees Rare Price Hike Wave, Reflecting Cost Pressures
China's automotive industry is experiencing a rare wave of price increases, driven by rising costs of components like memory chips. Major automakers including BYD, Tesla, Xiaomi, and NIO are raising prices, signaling an end to the roughly two-year price war, though Q1 sales have declined.
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- 📰 Published: April 29, 2026 at 17:09
- 🔍 Collected: April 29, 2026 at 18:01 (51 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 02:56 (8h 55m after Collected)
Central News Agency
(Central News Agency, Taipei, 29th) China's automotive industry has recently seen a rare wave of price increases, mainly due to rising prices of components such as memory chips, with car companies reflecting cost pressures. Leading player BYD also announced yesterday that it would raise the price of its smart driving option packages, affecting multiple core models.
According to reports from NetEase Technology, Haibao News, and other mainland media, BYD announced on the 28th that the optional price for the "Tianjin Eye B" assisted driving laser version of some models in its Dynasty Network, Ocean Network, and Fangchengbao series will be raised from RMB 9,900 (approximately NT$46,000, same below) to RMB 12,000, an increase of RMB 2,100. This price adjustment will take effect on May 1.
BYD stated that this price adjustment is due to the significant increase in global memory costs. NIO founder William Li previously revealed that rising memory prices could lead to a cost increase of RMB 3,000 to 5,000 for high-end new energy vehicle models.
The report pointed out that this price hike is not an isolated act by BYD. Recently, more than 10 car companies, including Tesla, Xiaomi, and NIO, have planned to increase prices or reduce preferential schemes, signaling a gradual end to the widespread price war that lasted for nearly two years.
According to incomplete statistics from mainland media Economic Observer, since the beginning of this year, over 15 Chinese new energy vehicle companies have announced product price increases or reductions in terminal discounts, with increases concentrated between RMB 2,000 and 10,000, mostly affecting mainstream models priced between RMB 100,000 and 300,000.
Among them, Tesla's Model Y Long Range and Performance versions increased by RMB 18,000 and 20,000 respectively; the new revamped Xiaomi SU7 electric car also increased by RMB 4,000 to 8,000 compared to the old model. In addition, NIO, Zeekr, and Xpeng have also stated that new cars in Q2 will increase in price by RMB 5,000 to 10,000.
The report mentioned that at the recent "2026 Intelligent Electric Vehicle Development High-Level Forum," many Chinese car company executives discussed the cost issues of new energy vehicles, which clarified the underlying reasons for the car price increases.
Lu Fang, Chairman of Dongfeng Lantu, stated that current prices of batteries, chips, especially memory chips, are rapidly rising, causing serious difficulties for the supply chain, and posing huge challenges to vehicle manufacturers' cost control. "If raw material prices continue to rise, it will inevitably be passed on to the end consumer, leading to an overall increase in car prices."
Price monitoring by the China Passenger Car Association's auto market research branch also confirmed this trend. Data shows that in the first quarter of this year, the average price of passenger cars in mainland China increased by RMB 15,000, 15,000, and 7,000 respectively compared to the same period last year; price increases for new energy vehicles equipped with more chips were particularly noticeable.
However, Chinese cars are rising rather than falling in price, and consumers do not seem to be buying it. According to data from the China Passenger Car Association, retail sales of new energy passenger vehicles in March were 848,000 units, a 14.4% decrease compared to the same period last year, showing a significant decline.
The report quoted industry insiders as saying that the competitive logic of Chinese car companies is changing. From the perspective of price increases, new energy vehicle products often adopt the method of "spec-up and price adjustment," meaning new models are equipped with higher hardware configurations or software capabilities while raising prices, such as the Xiaomi SU7 adding laser radar. This means that car companies are trying to use product experience enhancement to replace simple price adjustments. (Editors: Yang Sheng-ju / Chiu Kuo-chiang) 1150429
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(Central News Agency, Taipei, 29th) China's automotive industry has recently seen a rare wave of price increases, mainly due to rising prices of components such as memory chips, with car companies reflecting cost pressures. Leading player BYD also announced yesterday that it would raise the price of its smart driving option packages, affecting multiple core models.
According to reports from NetEase Technology, Haibao News, and other mainland media, BYD announced on the 28th that the optional price for the "Tianjin Eye B" assisted driving laser version of some models in its Dynasty Network, Ocean Network, and Fangchengbao series will be raised from RMB 9,900 (approximately NT$46,000, same below) to RMB 12,000, an increase of RMB 2,100. This price adjustment will take effect on May 1.
BYD stated that this price adjustment is due to the significant increase in global memory costs. NIO founder William Li previously revealed that rising memory prices could lead to a cost increase of RMB 3,000 to 5,000 for high-end new energy vehicle models.
The report pointed out that this price hike is not an isolated act by BYD. Recently, more than 10 car companies, including Tesla, Xiaomi, and NIO, have planned to increase prices or reduce preferential schemes, signaling a gradual end to the widespread price war that lasted for nearly two years.
According to incomplete statistics from mainland media Economic Observer, since the beginning of this year, over 15 Chinese new energy vehicle companies have announced product price increases or reductions in terminal discounts, with increases concentrated between RMB 2,000 and 10,000, mostly affecting mainstream models priced between RMB 100,000 and 300,000.
Among them, Tesla's Model Y Long Range and Performance versions increased by RMB 18,000 and 20,000 respectively; the new revamped Xiaomi SU7 electric car also increased by RMB 4,000 to 8,000 compared to the old model. In addition, NIO, Zeekr, and Xpeng have also stated that new cars in Q2 will increase in price by RMB 5,000 to 10,000.
The report mentioned that at the recent "2026 Intelligent Electric Vehicle Development High-Level Forum," many Chinese car company executives discussed the cost issues of new energy vehicles, which clarified the underlying reasons for the car price increases.
Lu Fang, Chairman of Dongfeng Lantu, stated that current prices of batteries, chips, especially memory chips, are rapidly rising, causing serious difficulties for the supply chain, and posing huge challenges to vehicle manufacturers' cost control. "If raw material prices continue to rise, it will inevitably be passed on to the end consumer, leading to an overall increase in car prices."
Price monitoring by the China Passenger Car Association's auto market research branch also confirmed this trend. Data shows that in the first quarter of this year, the average price of passenger cars in mainland China increased by RMB 15,000, 15,000, and 7,000 respectively compared to the same period last year; price increases for new energy vehicles equipped with more chips were particularly noticeable.
However, Chinese cars are rising rather than falling in price, and consumers do not seem to be buying it. According to data from the China Passenger Car Association, retail sales of new energy passenger vehicles in March were 848,000 units, a 14.4% decrease compared to the same period last year, showing a significant decline.
The report quoted industry insiders as saying that the competitive logic of Chinese car companies is changing. From the perspective of price increases, new energy vehicle products often adopt the method of "spec-up and price adjustment," meaning new models are equipped with higher hardware configurations or software capabilities while raising prices, such as the Xiaomi SU7 adding laser radar. This means that car companies are trying to use product experience enhancement to replace simple price adjustments. (Editors: Yang Sheng-ju / Chiu Kuo-chiang) 1150429
Choose to stand with facts, every sponsorship you make is the power to protect press freedom.
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Unauthorized reproduction, public broadcasting, public transmission, or use of the texts, images, and audio/video on this website is prohibited.