BYD to hike EV prices on higher material costs, subsidy cuts
Published on: Friday, November 25, 2022
By:
Nikkei, FMT
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BYD’s new vehicle sales reached 1.4 million units in the first 10 months of 2022. (FB pic/BYD)
The price increase ranges from 2,000 yuan to 6,000 yuan (US$280 to US$840) and targets such models as the Dynasty and Ocean series, which encompass the company’s mainstay electric vehicles and plug-in hybrid vehicles. BYD announced the hike on the social networking site Weibo.
The specific price increase for each model will be announced separately. If a deposit is paid and a contract is signed before Jan 1, the price hikes will not apply.
BYD, second only to Tesla in global EV sales, said the hikes would be implemented because prices of raw materials for batteries have been rising substantially since the second half of 2022 and government subsidies for electric cars and plug-in hybrid vehicles are scheduled to stop at the end of the year.
Currently, electric vehicles are granted subsidies of 12,600 yuan per vehicle while plug-in hybrid vehicles receive 4,800 yuan, enabling lower prices.
BYD’s new vehicle sales have been growing at a rapid clip, reaching 1.4 million vehicles in the first 10 months of 2022, 160% higher than in the same period last year.
With the announcement of the price hike, a last-minute surge in demand may occur that would hurt sales next year.
