3 Chinese EV makers raise prices – but analysts warn weak demand could force reversal
Xiaomi, Chery and FAW adjust prices amid surging chip and raw material costs, but analysts say soft sales could undermine gains
Xiaomi became the latest manufacturer to adjust pricing on March 19, announcing that its new-generation SU7 standard version would start at 219,900 yuan (US$31,800) – a 4,000 yuan increase over the previous model. Founder and CEO Lei Jun had attributed the rise to aggressive surges in supply chain component prices.
The trend began earlier this month. On March 10, Chery’s Exeed brand said the high-end ET5 would see a 5,000 yuan price increase from March 21. A smart driving package previously offered for free would now cost an extra 5,000 yuan, bringing the total increase to 10,000 yuan.
On March 8, FAW Bestune launched the 2026 Bestune Yueyi 03 with price increases ranging from 2,000 yuan to 5,000 yuan for mid-to-high versions.
Although the three brands are not sold on a large scale, the price increases mark a sharp departure from the aggressive cuts seen in 2025, which hurt profitability for carmakers and suppliers and drew regulatory scrutiny.
“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 the consultancy Automotive Foresight in Shanghai. “More brands may follow suit, though the retail prices are still subject to actual demand.”