Chinese EV automaker BYD has reportedly called on its suppliers to reduce prices, signaling a further escalation in the ongoing price war in the world’s largest automobile market.
According to a leaked email dated November 26, published by Chinese news outlet thepaper.cn, BYD requested a 10 percent price cut from one of its suppliers starting January 1. While the authenticity of the email has not been confirmed by Reuters, screenshots have been widely circulated on social media. BYD has not issued a comment on the email.
However, Li Yunfei, General Manager of BYD’s Brand and Public Relations Department, addressed the issue on Weibo. He clarified that annual price negotiations with suppliers are standard in the automotive industry and that the reduction targets BYD sets during large-scale purchases are negotiable, not mandatory.
BYD has played a central role in the price war initiated by Tesla last year, adopting an aggressive discounting strategy. This approach has enabled BYD to surpass Tesla as the world’s leading seller of electric vehicles.
In the first nine months of 2024, BYD claimed a 15.8 percent share of China’s overall auto market, with its EV and plug-in hybrid sales comprising over a third of the country’s total. The company’s stronghold in China has solidified its position as a global EV leader.