BYD Company Ltd. Pink: BYDDF, which is one of the top new energy vehicles producers in China, is raising its prices.
What Happened: Warren Buffett backed BYD is planning to raise the NEVs' prices between 1,000 yuan and 7,000 yuan $158 - $1,105 on February 1, according to the CnEVPost.
Customers who have already paid a deposit to sign up by the date will not be affected.
The hike was related to the increase in raw material prices and the reduction in NEV subsidies, according to BYD. China said in December that subsidies on NEVs will be slashed by 30% beginning in 2022 before being phased out.
In 2021, BYD sold 593,745 passenger NEVs in China, consisting of 320,810 BEVs and 272,935 plug-in hybrids.
Several of the peers of BYD, including Nio, Inc. NYSE: NIO and XPEV, have reacted to the NEV subsidy cuts.
Nio said in December it would absorb the difference between the old subsidy and the new subsidy for customers who place orders before midnight on December 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.
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, the OTC-listed BYD shares were slipping 1.61% to $32.96.