Xpeng raises price of electric cars after Tesla as material costs rise – Reuters

An Xpeng P7 electric car is displayed during the 18th Guangzhou International Automobile Expo at China Import and Export Fair Complex on November 20, 2020 in Guangzhou, China’s Guangdong Province.

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Chinese electric vehicle maker Xpeng will raise the price of its cars citing a sharp rise in the cost of raw materials.

Xpeng said from March 21, price increases for its vehicles will range from 10,100 Chinese yuan ($1,587) to 20,000 yuan before subsidies. The company did not give a breakdown of specific price increases for each of its models.

Xpeng currently sells the flagship P7 sedan, P5 sedan and G3 sport utility vehicle. It is gearing up to launch the G9 SUV later this year.

Electric car makers are grappling with rising costs for raw materials such as nickel, which is a key component in batteries. Other components such as semiconductors continue to be scarce, which is another headwind for Xpeng and rivals such as Nio.

Xpeng is not the first electric vehicle company to raise prices. Over the past week, Tesla has made several price increases on different models of its cars.

Earlier this week, Warren Buffett-backed automaker BYD also raised prices for its new energy vehicles, which include electric cars.

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