BYD insists price reduction requests can be negotiated and are not mandatory. The leading Chinese EV maker is on track to sell 4 million vehicles this year. Smaller automakers struggle to survive as China’s EV price wars continue to intensify.

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 Co. has asked suppliers to accept price cuts next year in a signal the Chinese electric vehicle maker is preparing for the brutal price war in the world’s biggest auto market to intensify.

A BYD solicitou a fornecedores que aceitem cortes de preços no próximo ano, em um sinal de que a montadora chinesa de veículos elétricos se prepara para a intensificação da brutal guerra de preços no maior mercado automotivo do mundo.

According to a leaked letter circulating on social media yesterday, BYD has asked its suppliers to accept price cuts