China’s EV price war is so brutal that BYD is trying to pinch its suppliers
Thu November 28, 2024Hong KongCNN —China’s top maker of electric vehicles (EV) wants to pay a lot less for car parts in the new year, a demand that signals there is no end in sight to a vicious price war nor economic gloom marked by lower wages and uncertain prospects.
BYD, Tesla’s main rival, asked a supplier to cut its prices by 10% next year, in widely circulated screenshots of a letter dated Tuesday and signed by He Zhiqi, an executive vice president at the Shenzhen-based company.
“In 2025, while there will be great opportunities in the EV market, market competition will also become more intense, entering a decisive battle and knockout rounds,” he wrote. “In order to enhance the competitiveness of BYD passenger cars, we need the entire supply chain to work together and continue to reduce costs.”
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