Li Auto will raise the price of the Li ONE by RMB 11,800, blaming the continued sharp increase in raw material prices.
(Image credit: Li Auto)
After a number of car companies, including Tesla, XPeng Motors and BYD, raised their prices, Li Auto became the latest one.
Li Auto (NASDAQ: LI, HKG: 2015) will adjust the price of the Li ONE effective April 1, 2022, due to the continued significant increase in upstream raw material prices, the company said in an announcement posted on Weibo today.
The price of the company's only model currently on sale will increase by RMB 11,800 ($1,853) to RMB 349,800 from the current RMB 338,000, according to the announcement.
The price adjustment will take effect from 0:00 on April 1, 2022, and customers who pay a deposit before then will not be affected.
Unlike other car companies that offer a large number of paid options, Li Auto has unified pricing for the Li ONE, offering only three premium color options that cost RMB 10,000 each. It allows users to choose from three wheel styles as well as interior colors for free.
Several Chinese electric vehicle companies have raised their prices in recent days, all citing price increases in raw materials.
Battery costs rose by a ridiculous amount in the second quarter, and most of the car companies that have not yet announced price increases are those whose contracts with battery suppliers have not yet been finalized, and they will also increase prices once they are, Li Auto founder, chairman and CEO Li Xiang said in a Weibo posted on March 19.
Li Auto's local peer XPeng (NYSE: XPEV, HKG: 9868) saw its price increases of RMB 10,100 to RMB 20,000 ($3,140) for its models starting March 21.
Previously, from January 11, XPeng's models priced below RMB 300,000 were raised in prices, with the P7 seeing an increase of RMB 4,300-5,900, the P5 sedan RMB 4,800-5,400 and the G3i SUV RMB 4,800-5,400.
NIO (NYSE: NIO, HKG: 9866), on the other hand, made it clear that it has no plans to raise prices at this time.
NIO said price stability is good for users' interests and the market, and it has no intention to raise prices in the short term, Sina Tech quoted the company as saying on March 21.
The current international raw material prices and the chip supply situation have made the whole supply chain cost a big change compared to before, and the company will make flexible decisions according to the changing environment, NIO said.
As of press time, Li Auto's shares traded in Hong Kong were down 0.19 percent, while NIO rose 5.36 percent and XPeng gained 4.09 percent.