Why new energy vehicles will rise in price

In my opinion, with the withdrawal of national subsidies for new energy vehicle cars, the price of trams is the trend, inevitable.

Recently, the Ministry of Finance and other four departments issued a "notice on the 2022 new energy vehicles to promote the application of financial subsidy policy" shows that "the national new energy vehicle purchase subsidy policy will be terminated on December 31 this year, and after this licensed vehicles will no longer be given subsidies".

In the face of the national subsidy retreat, a number of brands have been released one after another, including the lock single, limited time price guarantee, preview price increases and other actions to actively respond. Unsurprisingly, the end of the year will usher in a new energy vehicle enterprises crazy promotions, new energy vehicle sales will climb the peak. And after that, ushered in is the tram's general price increases.

Currently, each new-energy vehicle can enjoy a subsidy of 4800 yuan to 12600 yuan, but in 2023 will no longer enjoy this large amount of subsidies. Car companies are unable and unwilling to bear this "huge loss" alone, price increases are inevitable.

GAC said in a statement that it "will increase the official guide price of its models, ranging from 3,000 yuan to 8,000 yuan". BYD Auto is also planning to raise the prices of its new energy vehicle models by 2,000 to 6,000 yuan.

In addition to this, the price increase of new energy vehicles also has an important relationship with raw materials. Relevant information shows that the battery-grade potassium carbonate in the Chinese market has risen from the initial 60,000 yuan (early 2021) per ton to 500,000 yuan per ton, the price has doubled several times. What's more, due to fierce competition, car companies' investment in research and development and infrastructure maintenance costs are increasing by the day.

A series of circumstances indicate that new energy vehicles will usher in price increases in the next. In addition, most of the new energy car companies are in a loss-making situation, and only a small number of car companies with core technologies are able to make a profit. With the policy of subsidizing the purchase of cars is no longer implemented, many small car companies are bound to face a more difficult challenge of survival. If the price increase, there is a high probability of losing a number of customers, but not price increases, they are difficult to operate, bankruptcy may be sooner or later.

Of course, although the subsidy is no longer, but the new energy vehicle purchase tax reduction subsidy policy will continue to continue until December 31, 2023, which is good news for new energy vehicle enterprises.

But the law of social survival has always been "survival of the fittest", in this big adjustment in the survival of the strength of the strength of the car companies in this wave of adjustments to survive and survive and develop, or let us wait and see.