originally intended to bear the cost pressure itself, but was forced to raise prices under the new impact of the Covid outbreak, said William Li.

(Image credit: CnEVPost)

As raw material prices continue to rise, Nio has finally announced plans to increase prices, even though it said 20 days ago that it had no such plans.

Nio (NYSE: NIO, HKG: 9866) will increase vehicle as well as BaaS battery rental prices starting May 10, saying this is driven by the continued sharp increase in global raw material prices so far this year, according to a statement posted on its app today.

Starting prices for all versions of the company's SUVs will increase by 10,000 yuan ($1,570) across the board, while prices for the ET7 sedan, which began deliveries late last month, and the ET5 sedan, which is expected to begin deliveries in September, will remain unchanged.

In addition to the vehicle prices, Nio will also increase the monthly rental fee for the long-range battery pack in the battery rental service BaaS (Battery as a Service).

Raw materials, especially battery material prices have gone up too much this year, and no downward trend can be seen in the near future, said William Li, founder, chairman and CEO of Nio, adding that the company originally intended to bear that pressure itself, but was forced to raise prices under the new impact of the Covid outbreak.

"The price increases are because there is no choice, and please understand," Li said.

The specific price adjustments announced by Nio include:

The starting prices of each version of the ES8, ES6 and EC6 will increase by RMB 10,000, while the starting prices of the ET7 and ET5 sedans will remain unchanged.

The BaaS battery rental price will be adjusted from RMB 1,480/month to RMB 1,680/month for the long-range battery pack. The standard range battery pack rental service fee will remain unchanged at RMB 980/month. Customers who have already purchased a vehicle are not affected by this adjustment.

For customers who upgrade from the standard range battery pack to the 100-kWh long range battery pack, the annual payment will increase from RMB 7,980 to RMB 9,800, while the monthly payment will remain the same at RMB 880.

Customers who pay the ES8, ES6, EC6, ET7 deposit or ET5 reservation before May 9, 2022, the purchase and battery rental prices are not affected by this adjustment.

Since March this year, dozens of electric vehicle (EV) makers, including , Motors (NYSE: XPEV, HKG: 9868) and (NASDAQ: LI, HKG: 2015), have raised their prices, but Nio has not taken action.

On March 21, the company was quoted by several local media as saying that price stability is good for users' interests and for the market, and that Nio has no intention of raising prices in the short term.

The current international raw material prices and the chip supply situation have made the entire supply chain costs change significantly compared to before, and the company will make flexible decisions according to the changing environment, Nio previously said.

For the actions of price increases, Li Auto's founder, chairman and CEO Li Xiang presented his thinking at the end of last month before the company's price increase.

Battery costs rose ridiculously 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 once they do they will also increase prices, Li said on Weibo at the time.

It is worth noting that Nio will announce the new SUV ES7 at the end of May.

Local media Cailian reported late last month that Nio is expected to release vehicles for the 2022 model year in late May, which will feature major upgrades to its smart hardware, and that prices for the upgraded models and batteries are expected to rise.

Here is the latest pricing information for Nio models after the price increase on May 10.