--- title: "Trending! Xiaomi and BYD Adjust Prices in Succession" type: "News" locale: "en" url: "https://longbridge.com/en/news/286462891.md" description: "On May 14, Xiaomi and BYD adjusted their prices in succession, signaling a gradual easing of the price war in the new energy vehicle market. Multiple automakers have begun making limited price adjustments, with some models seeing price hikes or reduced purchase incentives. Prices for certain models from BYD and Xiaomi have increased, while brands such as Tesla have tightened their purchase policies. The primary reason for these adjustments is rising supply chain costs, particularly the significant increase in raw material prices for power batteries, which has compressed automakers' profit margins" datetime: "2026-05-14T20:23:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286462891.md) - [en](https://longbridge.com/en/news/286462891.md) - [zh-HK](https://longbridge.com/zh-HK/news/286462891.md) --- # Trending! Xiaomi and BYD Adjust Prices in Succession On May 14, the topic “Xiaomi and BYD Adjust Prices in Succession” surged to the top of Baidu’s trending search list. The “price war” that had persisted in the new energy vehicle (NEV) market for years is subsiding. Recently, following BYD, numerous NEV manufacturers have signaled price adjustments, either by directly raising prices for certain models or gradually reducing terminal purchase incentives, initiating low-key trials of “price increases.” “Currently, the prices of our best-selling models in the store remain unchanged, but the immediate RMB 10,000 discount may be canceled later, leading to a rise in vehicle purchase costs,” a sales representative at a NIO store in Beijing told reporters. Sales staff at BYD dealerships stated that recent price increases apply only to specific optional versions, while prices for base models remain stable. Unlike the previous intense “price war,” this round of price adjustments by automakers has been notably cautious, primarily involving small-scale, partial model adjustments rather than across-the-board, large-scale price hikes. According to incomplete statistics, more than 10 NEV manufacturers have recently announced price adjustments, reduced incentives, or plans to raise prices in the second quarter. BYD increased the price of its intelligent driving optional package for certain models by over RMB 2,000; Changan Qiyuan raised the price of its Intelligent Laser Edition by RMB 3,000; Xiaomi increased prices across its new SU7 lineup by RMB 4,000; and NIO and XPeng revealed plans to raise model prices in the second quarter. Brands such as Tesla, ZEEKR, and Avatr have tightened their interest-free financing policies, leading to an increase in hidden vehicle purchase costs. The tentative price increases by multiple brands are primarily driven by persistently rising supply chain costs. After years of fierce “price war” competition, profit margins for NEV manufacturers have been significantly compressed. From January to February 2026, the profit margin of the automotive industry was only 2.9%, far below the average level of the manufacturing sector. Cost pressures that could previously be absorbed through internal cost reductions are now being passed on to the terminal market due to across-the-board increases in supply chain costs. As a core component of new energy vehicles, power batteries account for 30% to 50% of the total vehicle cost, and fluctuations in their raw material prices directly impact overall manufacturing costs. Data shows that the spot price of battery-grade lithium carbonate has risen from RMB 75,000 per ton in July last year to nearly RMB 200,000 per ton recently, becoming the primary pressure point on the cost side for automakers. Meanwhile, amid the global wave of intelligent transformation, prices for automotive-grade chips, storage devices, and other intelligent components have surged. Specifically, cumulative price increases for automotive-grade DDR4 memory (Fourth Generation Double Data Rate Synchronous Dynamic Random Access Memory) have exceeded 150%, while spot prices for high-end DDR5 memory (Fifth Generation Double Data Rate Synchronous Dynamic Random Access Memory) have surged by over 300%. According to UBS estimates, the rise in memory chip prices has increased the per-vehicle cost of intelligent driving models by RMB 3,000 to RMB 7,000. Additionally, rising prices for basic raw materials such as crude oil, rubber, and aluminum, combined with increasing global logistics and transportation costs and geopolitical factors, have driven up costs across the entire automotive supply chain. Automakers face a dilemma: on one hand, they are under profit pressure from continuously rising supply chain costs; on the other, the passenger vehicle market has experienced sustained negative growth so far this year. The NEV industry is thus caught between raising prices and maintaining sales volumes. Cui Dongshu, Secretary-General of the China Passenger Car Association, analyzed that it is extremely difficult to implement comprehensive price increases in the current NEV market. From a market structure perspective, high-end NEV manufacturers generally maintain gross profit margins above 20%, giving them relatively stronger capacity to withstand cost pressures. In contrast, mid-to-low-end manufacturers face dual pressures of intensified market competition and shrinking consumer demand. A significant price hike would easily lead to customer loss, making across-the-board price increases highly unlikely. Furthermore, a large number of new models entering the market with low-price strategies have further compressed the room for price adjustments for existing models. For most automakers, price increases remain largely at the level of public discussion, with actual implementation facing numerous difficulties. However, in recent years, the domestic automotive industry has fallen into an involutionary trap of “trading price for volume,” constantly squeezing corporate profits and constraining R&D investment, technological innovation, and quality upgrades, which is detrimental to the long-term healthy development of the industry. The China Association of Automobile Manufacturers believes that this round of price adjustments is not only a passive response by NEV manufacturers to rising costs but will also promote the industry’s gradual departure from price-based involution, moving towards high-quality value competition. National Business Daily Risk Warning and Disclaimer The market involves risks, and investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. 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