BYD and Rivals in China Tell Suppliers to Cut Costs Amid Price War

Published On Nov 27, 2024, 5:22 AM

Chinese electric vehicle manufacturers, including BYD, are facing severe competition and a price war in the domestic market. To cope, they are urging their suppliers to cut prices significantly, with BYD requesting a 10% reduction starting next year. The situation is described as a 'decisive battle' for market dominance in the fast-growing electric vehicle sector. As various brands flood the market, a company like SAIC Maxus has also asked for similar cost reductions. This trend is driven by oversupply in the automobile market and is expected to persist, keeping pricing pressures high as manufacturers struggle to maintain margins.