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Chinese EV maker BYD raises prices citing jump in raw materials costs -Breaking

by Mike Robinson

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© Reuters. People view the BYD booth in Shanghai during the media day at Auto Shanghai 2021, Shanghai. REUTERS/Aly Song

SHANGHAI, (Reuters) – Chinese electric vehicle maker BYD Co Ltd (OTC) Ltd announced late Tuesday that it will raise its prices for its vehicles by 3,000 to 6,000 yuan (471-942). This was due to the increasing cost of raw material.

According to the company, price increases will begin Wednesday. Customers who paid deposits for vehicles in advance of then won’t be affected.

It stated that “Due to continued increases in raw material prices”, BYD had officially accompanied Wang Chao Business, Ocean Network Business, and Ocean Network Business in the adjustment of prices for relevant EV models.

It comes a day before Tesla Inc (NASDAQ) raised prices in China and America for the first time in less that a week. Elon Musk, Tesla’s Chief Executive Officer has stated that the U.S.-based electric carmaker is facing serious inflationary pressures in raw materials as well as logistics.

Rising raw material prices are a result of disruptions to supply chains following Russia’s invasion Ukraine. Russia describes its actions in Ukraine as a “special operations”.

Particularly, the prices for metals that are used in automobiles have skyrocketed, such as aluminium used to make bodywork and palladium that is used in catalytic convertors. Nickel and lithium, which power EV battery, also rose.

($1 = 6.3696 renminbi)

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