BYD Company Ltd. (OTC:BYDDF), which is among the top new energy vehicle, or NEV, producers in China, is raising its prices.
What Happened: Warren Buffett-backed BYD is planning to raise prices of its NEVs between 1,000 yuan and 7,000 yuan ($158-$1,105), effective Feb. 1, the CnEVPost reported, citing the company.
Those customers who have already paid a deposit to sign up by the date will not be affected.
BYD attributed the hike to the increase in raw material prices and the reduction in NEV subsidies. China confirmed in December that subsidies on NEVs will be slashed by 30% beginning in 2022 before eventually being phased out.
Related Link: Nio, XPeng, Buffett-Backed BYD Among Top Quality EV Brands In China: Survey
Why It's Important: BYD sold 593,745 passenger NEVs in China in 2021, comprising 320,810 BEVs and 272,935 plug-in hybrids.
BYD's peers, including Nio, Inc. (NYSE:NIO) and XPeng, Inc. (NYSE:XPEV), have also reacted to the NEV subsidy cuts.
Nio reportedly said in December it will absorb the difference between the old subsidy and the new subsidy for those customers who place preorders before midnight on Dec. 31 and take delivery before March 31.
XPeng models priced below 300,000 yuan — the ceiling for qualifying for subsidy — saw price hikes effective Jan. 11, CnEVPost reported.
EV giant Tesla, Inc. (NASDAQ:TSLA) also announced price increases for its made-in-China Model 3 sedan and Model Y SUV at the end of 2021.
At last check, OTC-listed BYD shares were slipping 1.61% to $32.96.
Photo courtesy of BYD.
