SHANGHAI -- Leading Chinese electric vehicle manufacturer BYD Co. has adjusted product pricing, citing the impact of reduced subsidies for new energy vehicles since November 2022.
Official guidance prices will rise by between 2,000 yuan ($290) and 6,000 yuan for various models beginning Jan. 1, the company said on its official Weibo account.
Tesla Inc. is starting 2023 as it ended 2022: with incentives aimed at propping up sales in China.
The carmaker is offering Model 3 sedan and Model Y crossover buyers as much as 10,000 yuan ($1,450) if they take delivery by Feb. 28, according to Tesla’s website. The company is extending a 6,000-yuan subsidy it started offering in early December, and the other 4,000-yuan subsidy tied to purchasing insurance through Tesla was first introduced in November.
The pricing adjustments at the major EV makers come as the Chinese economy faces new headwinds from a surge in COVID cases after the government eased containment restrictions. China's December factory activity shrank at the sharpest pace since the pandemic first emerged nearly three years ago, after Beijing's abrupt reversal of counter-epidemic measures last month set off a wave of COVID infections across the country.
The official purchasing managers' index fell to 47.0 in December from 48.0 in November, the National Bureau of Statistics said on Saturday. Economists in a Reuters poll had expected the PMI to come in at 48.0. The 50-point mark separates contraction from growth on a monthly basis.