BYD had announced last week that it will be increasing the cost of its electric vehicles due to the rise in cost of raw materials for production paired with lower subsidies.
The Chinese automobile maker will hike price for its Dynasty and Ocean series of new energy vehicles (NEV) models, which are now up to 7,000 Yuan (roughly 1,105 US Dollars) more expensive than before. In a statement, the company stated that the changes in pricing arrives due to higher cost of raw materials and the declining subsidies for new energy vehicles. Notably, the new price adjustments will come into effect starting from the 1st of February 2021.
Furthermore, the customers that are paying a deposit when signing the contracts will be exempted from this adjustment. The news of the price hike arrives soon after other Chinese carmakers like Xpeng Motors also raising the cost of its EV models in China by around 4,000 to 6,000 Yuan (roughly 632 to 947 US Dollars) as well. Similarly, other NEV makers like GAC Aion and NETA Automobile have also raised the price tags of their offerings this year.
For those unaware, China’s Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission had jointly shared a new notice on 31st December 2021. In this notice, the plans to reduce the subsidy standards were detailed for NEVs in 2022 by 30 percent over 2021.
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