The Japanese subsidiaries of German auto giants Volkswagen and Audi respectively announced on the 26th that due to higher raw material prices, most of the new cars sold in Japan will increase in price from October 1. Japanese domestic auto giants are also suffering from rising prices of iron and rare metals. If the earnings of various auto companies deteriorate significantly, the trend of price increases may also expand.
Volkswagen’s average price increase is about 1.5%, and 10 of the 13 models sold in Japan are targeted. The main model “Golf” has just launched a new model in June, and the suggested retail price will rise to 2.959 million yen (approximately RMB 174,000), which is 43,000 yen higher than the original.
Audi’s gains averaged close to 2%. Almost all models are targeted, and some models have been improved at the same time. The small car “A3” launched in May will increase its price by 90,000 yen to 3.19 million yuan. It is said that popular models are also facing a situation where they cannot afford to increase costs without increasing their prices.
The new crown vaccination is advancing around the world, economic activity resumes, and the demand for iron and aluminum has increased sharply. Toyota Motor recently reached an agreement with Nippon Steel to increase the purchase price of steel. Semiconductors, which are severely in short supply, are also rising in price.
A person from the Japanese auto giant pointed out that rising raw material prices “will affect business operations,” and said that by developing cars that use less rare metals, they “hope to minimize the impact on car prices.”