Millions of auto workers and suppliers in China are feeling the heat as an electric vehicle price war forces carmakers to shave costs anywhere they can.
State-run China Automotive News estimates there are over 100,000 auto suppliers in the country.
Suppliers typically negotiate prices once a year, but many have been pressed to lower prices on a quarterly basis in 2023, two senior executives at auto suppliers said.
And in June, a group of small suppliers wrote to state-owned Changan Automobile to push back against 10% price reductions.
Three months later, he told Reuters that price cuts had been more aggressive in 2023 than in previous years.
Persons:
Aly, Mike Chen, Chen, carmakers, Tesla, George Magnus, Elon Musk, Mike Chen's, Li Auto, Liu, Changan Automobile's, Chen Yudong, They've, Zhang Yan, Brenda Goh, Kripa Jayaram, Marius Zaharia, David Clarke
Organizations:
SAIC Volkswagen, REUTERS, Rights, Shanghai, SAIC, Volkswagen, VW, Oxford University's China, China Passenger Car Association, Tesla, GM, HK, Changan Automobile, Mitsubishi Motors, Toyota, Hyundai, China Automotive, Automobile, EV, Reuters, Thomson
Locations:
Shanghai, China, China's, Beijing, Shenzhen, Hefei, Chongqing, Chery's, Qingdao