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China EV Maker BYD Hikes Prices Citing Soaring Input Costs


China's BYD is under attack over a recall that was issued over a fire risk in some of its electric vehicle (EV) batteries.
BYD has been a major beneficiary in the automotive industry's rapid shift to electrification, propelled by the backing of US billionaire investor Warren Buffett. File photo: Reuters.

 

Chinese electric vehicle (EV) maker BYD said late on Tuesday it would raise prices on its cars by 3,000-6,000 yuan ($471 to $942), citing the rising cost of raw materials.

The price increases will take effect from Wednesday, it said, adding that customers who had paid deposits on vehicles prior to then would not be affected.

“Due to the impact of continued rises in raw material prices, BYD has officially guided Wang Chao Business and Ocean Network Business to adjust prices on relevant EV models,” it said in a statement on its official Weibo account, referring to its sales channels.

The announcement comes a day after Tesla raised its prices in China and the United States for the second time in less than a week. Tesla chief executive Elon Musk has also said the US electric carmaker was facing significant inflationary pressure in raw materials and logistics.

The cost of raw materials is surging, exacerbated by supply chain disruption following Russia’s invasion of Ukraine. Russia calls its actions in Ukraine a “special operation”.

In particular, prices of metals used in cars have soared, including aluminium that is used in the bodywork, palladium used in catalytic converters, and nickel and lithium that power EV batteries.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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