Ford Motor Co F is reportedly set to steeply hike prices for its Mustang Mach-E crossovers later this week in China.
What Happened: The automaker is expected to increase Mach-E prices in the range of $1,120 to $3,530 on May 5, CnEVpost reported on Sunday, citing Ford China's electric vehicle division’s social media post on Weibo.
The legacy automaker launched the Mach-E in China in April last year at a ticket price of $42,400 to $59,184.
Mach-E competes with Tesla Inc’s TSLA Model Y, which is a big volume generator for the Elon Musk-led company.
See Also: Ford Plans More Price Hikes As It Sees $4B Commodity Headwinds This Year
The price hike is due to significant inflationary pressure on manufacturing and raw materials, the report said, citing the Weibo announcement.
Ford did not immediately respond to Benzinga’s request for comment.
The Dearborn, Michigan-based company had previously teased the price hikes in mid-April.
Why It Matters: CEO Jim Farley last week said the legacy automaker is seeing significant pricing pressure on the commodity side with respect to steel, aluminum, copper, lithium, and nickel.
The automaker is expecting commodity headwinds to double to $4 billion this year and will rely on further price hikes to offset those increases.
See Also: Ford Said To Be Eyeing A Steep Price Hike For Mustang Mach-E EVs In China
Price Action: Ford shares closed 3.15% lower at $14.16 a share on Friday.
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