Tesla's recent price increases attracted a lot of attention, but the rises are not exclusive to Tesla. Others are applying higher prices too and, most recently, China's largest electric vehicle manufacturer, BYD, also announced price increases (for new orders).
BYD plug-in electric cars become 3,000 CNY ($472) to 6,000 CNY ($944) more expensive on March 16, which comes on top of the previous increase in January (by 1,000-7,000 CNY).
Tesla increased prices twice within a week.
The company specifically said that it's due to the higher cost of raw materials.
An interesting thing is that according to Gasgoo, the plug-in hybrid Tang, Song and Qin are now 3,000 CNY more expensive, while the all-electric Song, Qin, Yuan and Dolphin noted a 6,000 CNY increase. It would indicate that the increase has something to do with the battery pack size - BEVs have much bigger batteries than PHEVs.
Let's note that the vast majority of BYD's plug-ins are powered by BYD's in-house developed and produced LFP batteries.
If mainstream, high-volume plug-in electric vehicle manufacturers are increasing prices, we can assume that this will roll out all over the world.
But will it affect the growth of sales? Well, it might, but considering that BYD increased its plug-in sales 6-times year-over-year during the first two months (to over 180,000 plug-in electric cars), there is not much to worry about. Sales should continue to increase compared to 2021.
BYD plug-in electric car sales in China – February 2022
Depending on the situation in Europe - the ongoing Russian invasion of Ukraine and sanctions on Russia - we might see even higher prices for EVs.
Those who need buy a new vehicle in about a year might consider locking in a price through an order with a deposit. However, a side effect of that will be an increase in estimated delivery times and an impression that there is even higher demand. That's what happens in the growing inflation environment. Money becomes hot.
