BYD Raises Prices for Driver-Assist Systems as Memory Costs Surge

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The Chinese electric vehicle manufacturer announced that it will be increasing the price of its lidar driver-assistance system package on several models, citing a surge in global memory storage costs.

Effective May 1, the price of the “God’s Eye” smart driving system will rise from CNY 9,900 ($1,448) to CNY 12,000 ($1,755) on certain vehicles, according to the company based in Shenzhen.

Rising costs for automotive-grade memory are a major factor prompting automakers to boost the prices of optional intelligent driving features. Market data shows the spot price for vehicle-mounted Double Data Rate 5 (DDR5) memory surged approximately 300% from last September to January, with an additional increase of 50-70% since then, as reported by a research firm.

A source from a Beijing-based semiconductor company revealed that their automotive DRAM chips are experiencing extreme shortages this year, accompanied by continuous price hikes with little room for bargaining. The supply constraints and rising costs are expected to persist, though future price increases will depend on demand levels next year.

Amid intense competition, many Chinese automakers are feeling the pressure to raise prices. Beyond memory costs, soaring oil prices have also pushed up the costs of raw chemical materials.

Industry expert Lu Fang, chairman of a leading premium electric vehicle brand under a state-owned automotive group, predicted that price increases could become a common trend within the auto sector. He advised consumers to consider making their purchases sooner rather than later to avoid higher costs later on.

Recently, several manufacturers have announced price hikes. Chery increased the price of its premium Exeed brand by CNY 5,000 ($731) last month, while Xiaomi Auto raised the price of its upcoming SU7 model by CNY 4,000.

Furthermore, the cost of multiple models equipped with autonomous driving systems based on Huawei’s Harmony Intelligent Mobility Alliance has increased by CNY 10,000 ($1,462) following lidar sensor upgrades.