(Yicai Global) Nov. 23 -- Leading Chinese electric automaker BYD will raise the guide price of some of its new energy vehicles by as much as CNY6,000 (USD840). Mercedes-Benz cut the price of some of its electric models in China last week, while Tesla raised them last month.

BYD will increase the prices of some models in its Dynasty, Ocean, and Denza series by between CNY2,000 and CNY6,000 because of surging raw material costs and the upcoming end of NEV subsidies, the Shenzhen-based firm said on Weibo today. The changes will not affect contracts signed and deposits made before the end of the year.

China subsidizes the cost of plug-in hybrid EVs to the tune of CNY4,800 per vehicle and for a battery EV the grant is CNY12,600 (USD1,760), BYD noted. Both subsidies are scheduled to expire on Dec. 31. 

It is also costing more to make the vehicles. The prices of battery raw materials, such as lithium carbonate, have also surged. In mid-November, market prices of battery-grade lithium carbonate in China had nearly doubled to CNY590,000 (USD82,450) per ton from earlier this year.

On Oct. 24, Tesla cut the prices of its China-made Model 3 by between CNY14,000 and CNY18,000 and that of the Model Y by CNY20,000 and CNY37,0000, setting up the expectation that Chinese automakers would follow suit.

Then on Nov. 8, the US carmaker offered buyers of Model 3 and Model Y vehicles in stock an CNY8,000 subsidy on car insurance if the vehicles are delivered between Nov. 8 and 30, or a subsidy of CNY4,000 if they are delivered between Dec. 1 and 31.

On Nov. 17, the Chinese joint venture of German luxury car brand Mercedes-Benz slashed the prices of some models in its all-electric EQ series by between 8.6 percent and 22 percent, and also said it was offering a subsidy for customers who bought them before Nov. 16.

Editor: Futura Costaglione