The price range for these budget models is RMB 29,900 - RMB 81,900, and the increase is close to 10 percent for several models.

(Chery Little Ant. Image credit: Chery)

With reduced subsidies and increased raw material costs, Chery is the latest automaker to raise the price of new energy vehicles (NEVs).

Chery announced today that it is raising the official guide price of the Little Ant and QQ Ice Cream series by RMB 3,000-7,100 ($1,120), effective today.

The price range for these budget models is RMB 29,900- 81,900, and the increase is close to 10 percent for several models.

(Image credit: Autohome)

The cost of several of Chery's NEV models continues to increase due to national policy adjustments and the continued sharp rise in the price of raw materials, including batteries and chips, the company said in a statement.

The move is to allow the company to continue to provide customers with quality products and services, it said, adding that consumers who have previously paid a deposit and signed up are not affected.

The Chery Little Ant is a minicar powered by a permanent magnet synchronous motor with a maximum power of 30kW and a peak torque of 120Nm.

The car is equipped with two battery pack options, 30.6kWh and 40.6kWh, with an NEDC range of 301km and 408km respectively.

The QQ Ice Cream is equipped with a maximum power of 20 kW click and a peak torque of 85 Nm. The model offers two range options, 120km and 170km.

China's purchase subsidies for NEVs have been reduced by 30 percent this year compared to 2021, and the country will not provide any subsidies next year. Meanwhile, the rising cost of raw materials, including lithium and nickel, and chips, is putting new energy makers, especially those offering cheaper models, under great pressure.

Great Wall Motor's electric vehicle brand Ora last month began to stop taking orders for its lower-priced Black Cat and White Cat models, saying they were causing huge losses for it.

Ora CEO says lower-priced model brings losses of over $1,580 per unit sold