Niu Technologies, which prices most of its products below RMB 5,000, blames the move on a sharp increase in upstream raw material prices.
(Image credit: Niu Technologies)
Price hikes are not only seen in electric cars, but also in electric scooters.
Chinese e-scooter maker Niu Technologies (NASDAQ: NIU) announced Monday that it will raise the retail guidance prices for its entire line of products with lithium batteries by RMB 200-1,000 ($157) on April 1.
Like the reasons given by electric vehicle makers for the recent price hikes, Niu Technologies blamed the move on a sharp increase in upstream raw material prices.
Compared to the price of cars, the price of electric scooters is much lower. Of the products on sale on Niu Technologies' website, 11 are priced below RMB 5,000 and only four are priced above RMB 5,000.
Founded in 2014, Niu Technologies has 3,108 stores in China, covering 239 cities. In overseas markets, the company is already present in 50 countries.
The company sold 1,037,900 units for the full year 2021, up 72.5 percent year-on-year, and the first time annual sales exceeded 1 million. It has sold more than 2.7 million two-wheeled electric vehicles cumulatively worldwide through the fourth quarter of 2021.
Despite the record sales, Niu Technologies' revenue per vehicle in 2021 fell 12 percent year-on-year to RMB 3,569, it reported in its earnings report on March 7.
With the upcoming price increases, the company may expect to see improved revenue from each product sale.
It's worth noting that Niu Technologies founder Li Yinan has joined the car-making bandwagon and started Niutron, an electric vehicle company, even though the two companies are not affiliated.
The Niutron brand was announced on December 15 last year, and Li said at the time that the first model, a midsize SUV, was scheduled for a small pilot production run in March 2022, with deliveries starting in September.
The model will offer consumers the option of an extended-range version as well as an all-electric version.
On March 11, Niutron announced that it will launch its smart electric SUV, the Niutron NV, in Beijing at 19:30 local time on March 31.
Chinese EV startup Niutron unveils design and core specs for its first model