The price increase, which ranges from RMB 1,000-7,000, will take effect on February 1 and will not affect customers who have paid a deposit to sign up before then.

(Image credit: BYD)

BYD will adjust the official guide prices of its Dynasty and Ocean series of new energy vehicles (NEVs) in response to a significant increase in raw material prices and the decline of subsidies for NEV purchases, the company said today.

The price increase will range from RMB 1,000 ($158) to 7,000 yuan, with the increase varying by model.

The price adjustment will take effect on February 1, and customers who paid a deposit to sign up before then will not be affected, it said.

On December 31, an announcement from four departments, including China's Ministry of Finance, said that subsidies for NEV purchases in 2022 will be slashed by 30 percent from 2021.

Previously, BYD's local counterparts Nio and Xpeng Motors all made price adjustments in response to the subsidy rollback.

Nio previously said that with China's subsidies for NEV purchases in 2022 shrinking by 30 percent from 2021 levels, consumers who pay a deposit starting January 1 will need to follow the latest standards to take advantage of the subsidies.

Nio does not offer different subsidy amounts for each different model, but rather makes the subsidy amount vary depending on the model's battery pack.

According to Nio's latest standard, individual consumers will be able to enjoy a subsidy of RMB 11,340 for a model with a standard 75 kWh battery pack, or RMB 12,600 for a 100 kWh pack.

Effective January 11, Xpeng's models priced below RMB 300,000 have all seen price increases, including RMB 4,300 - 5,900 for the flagship sedan P7, RMB 4,800 - 5,400 for the P5 sedan, and RMB 4,800 - 5,400 for the G3i SUV.

According to the current regulations, for models that do not support battery swap, they will not be eligible for the subsidy if their selling price is higher than RMB 300,000. Therefore Xpeng's such models have previously been unable to enjoy subsidies.

Tesla China raised the price of the entry-level Model 3 by RMB 10,000 on December 31, and the entry-level Model Y was raised by RMB 21,088.

Back at BYD, the company sold 93,945 NEVs in December, up 225.7 percent year-on-year and up 3 percent from 91,219 units in November.

For the full year 2021, BYD will sell 603,783 NEVs, up 218.3 percent from 2020.

Because of the lack of capacity, consumers who reserve BYD's NEVs usually have to wait several months for delivery, for which BYD has apologized several times.