BUSINESS

Chinese EV-Maker Chairman Warns of Industry Price Hikes as Component Costs Rise

Published: Apr. 13, 2026 5:47 p.m. GMT+8

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Auto price hikes are increasingly likely as prices of key components like chips soar, said Lu Fang, chairman of Chinese electric-vehicle maker Voyah.

The remarks, made Saturday at the Intelligent Electric Vehicle Development Forum, underscore the mounting margin pressures on Chinese automakers, who have so far absorbed soaring chip and battery costs to survive fierce competition amid slumping domestic sales.

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Explore the story in 30 seconds

Voyah chairman Lu Fang warns of likely auto price hikes due to soaring chip, memory, and lithium carbonate prices since H2 2025.
Chinese Q1 auto sales fell nearly 20% YoY to 4.8M vehicles; carmakers absorb costs amid competition, unlike smartphones.
Voyah focuses on efficiency, tech, sales volume, and domestic parts like air suspension to mitigate risks.

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Who’s Who

Voyah: Voyah (岚图汽车), a Chinese electric-vehicle maker, faces margin pressures from soaring chip and battery costs. Chairman Lu Fang predicts auto price hikes as automakers may pass on burdens amid slumping sales. Voyah is boosting efficiency, sales volume, and localizing components like air suspension for its Free model (launched June 2021) with KH Automotive.

UBS Group AG: In early 2026, UBS Group AG estimated that vehicle manufacturing costs had increased by thousands of yuan per vehicle.

Li Auto Inc.: KH Automotive Technologies expanded by supplying air suspensions to Li Auto Inc., becoming one of the world’s largest sellers.

KH Automotive Technologies (Zhejiang) Co. Ltd.: KH Automotive Technologies (Zhejiang) Co. Ltd. partnered with Voyah to mass-produce air suspension for the Voyah Free model launched in June 2021. It later supplied Li Auto Inc., becoming one of the world’s largest air suspension sellers. This helps replace imported components amid rising costs.

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