Increase in Electric Vehicle Battery Prices Turns Out a Mixed Bag for Non-Leading Enterprises

SHANGHAI, Jan. 9 (SMM) – Changxing Storage Battery Association of Zhejiang province, decided to raise prices for electric vehicle batteries by RMB 20/set recently, giving a boost to the industry. However, this action also triggered concerns among non-leading enterprises.

SMM sources report that battery producers in Jiangsu and Shandong still held a wait-and-see attitude after Tianneng Power reportedly increased battery prices. According to some enterprises contacted by SMM, smaller enterprises will be only further hurt if they raise prices blindly following battery giants given the sluggish consumption.

A producers in Shandong reflected that most battery traders were busy consuming existing inventories this month after replenishing stocks in large amounts in late December, so the increase in prices is believed to be limited despite the slight improvement in sales.

Tianneng Power has reportedly raised battery prices on January 1, 2013, with price for 48V 12Ah battery up RMB 16/set, and that for 48V 20Ah up RMB 22/set. Yao Lingchun, secretary to Zhejiang Storage Battery Industry Association, revealed that Chaowei Power will also increase battery prices recently to help ease its losses.