BYD Co. late on Tuesday said it would raise prices on its vehicles by 3,000-6,000 yuan ($471-942), 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 Inc. raised prices in China and the United States for the second time in less than a week. Tesla CEO Elon Musk has also said the U.S. 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.

Tesla Inc hiked prices in China and the United States on Tuesday for its second increase in less than a week, after founder Elon Musk said the U.S. maker of electric cars faced significant inflation pressure.

The increases come as costs of raw materials surge, worsened by a crisis over Russia's invasion of Ukraine, with Musk saying on Sunday that the carmaker and rocket company Space X faced the pressure in areas such as raw materials and logistics.

The company raised prices for all its models in the United States, its website showed. In China, it raised prices of some China-made Model 3 and Model Y products by about 5%, soon after a hike on March 10.

Tesla declined to comment.

After the increases in China, the Model Y Long Range vehicle costs 375,900 yuan ($58,952.68), up 18,000 yuan from March 10, when its price went up by 10,000 yuan.

The price tag of the Model 3 Performance unit was 367,900 yuan after Tuesday's increase of 18,000 yuan, which followed an increase of 10,000 yuan five days ago.

Source: Reuters, local medias, BYD, Tesla.com

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