Over 20 new energy vehicle companies officially announced that they increased the prices of more than 40 models due to surging prices in the upstream market of battery raw materials and chips, Kallanish learns from the automotive companies. 

On 18 March, Chinese NEV maker XPeng announced a new round of price increase with the highest increase range reaching CNY 30,000 ($4,719.41), effective 21 March.

A sales person from XPeng says: "In addition to the price increase, free charging rights and car purchase rights will also be cancelled." On the same date, Neta Auto, Leap Motor, and Geely-Geometry also announced price increases. 

Lithium carbonate and nickel sulfate largely caused the increases in power batteries and thus electric vehicles. According to Cui Dongshu, secretary general of China Passenger Car Association: "Since the beginning of this year, the prices of power batteries have risen at a much higher rate than industry expectations. The pressure on the automotive companies became higher resulting from the signing of new power battery orders with (much) higher prices, so they were forced to raise car prices."

Zhang Xiang, researcher of North China University of Technology, says: "In addition to the power battery side, the chip shortage also increases costs. In order to solve the chip issue (for production and sales), some automotive companies have to purchase chips at high prices."

According to market information, due to the war in Ukraine, two suppliers of neon, a special gas essential for semiconductor production, have stopped production. 

On 16 March, an earthquake in Japan also impacted the chip supply from several automotive component companies located there.