Faced with a bruising price war in the fast growing but crowded domestic market for electric vehicles, Chinese automobile manufacturers are pressuring suppliers to deliver hefty cost cuts.
China’s BYD, the world’s largest manufacturer of electric vehicles, asked a supplier to reduce its product prices by 10 percent starting next year, according to a company email that was apparently leaked and circulated widely on the internet in China.
He Zhiqi, BYD’s executive vice president, said that the competition for so-called new energy vehicles — China’s preferred phrase for fully electric and gas-electric hybrid vehicles — was entering a “decisive battle” or “knockout match,” according to the email with the subject line “BYD Passenger Vehicle Cost Reduction Requirements in 2025.”“In order to enhance the competitiveness of BYD passenger cars, we need the entire supply chain to work together and continue to reduce costs,” Mr.
Persons:
China’s BYD, ”, Mr
Locations:
China
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