Li Auto to Raise Price of Premium Electric SUV by $1,851

Chinese electric vehicle manufacturer Li Auto announced on Wednesday a price increase for its six-seat premium electric SUV, the Li ONE. Affected by the continuous sharp rise of raw materials, the retail price will be lifted from 338,000 yuan to 349,800 yuan ($53,025 to $54,876).

Li Auto added that the price adjustment will take effect from April 1, 2022, and customers who pay deposits through the company’s official app, website or retail centers before that will not be affected.

Earlier on March 19, Li Xiang, founder and CEO of Li Auto, commented on the current price increase trend. He said that, “At present, the car brands that have contracted with battery manufacturers to determine the price increase range of batteries in the second quarter basically announced the price increase immediately. For those companies that haven’t announced price increase, most of them have not reached negotiation with the battery makers. When the discussion is finished, they will immediately increase the price of their products.”

“The increase in battery costs in the second quarter was outrageous. War, politics and the pandemic have enabled car buying to appreciate, and the overall price of second-hand cars in the U.S. has increased by 30%,” Li added.

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According to incomplete statistics, since the beginning of this year, more than 20 new energy vehicle companies have announced price increases, involving nearly different 50 models. The main reason is the impact of rising prices of lithium, nickel and other commodities, combined with declining government subsidies.