Friday, November 29, 2024

"Chinese EV maker BYD asks dozens of suppliers for price cuts, Yicai reports"

Building electric vehicles profitably is hard.

But somewhat easier when you are so big you can ask for discounts from companies that depend on you and expect to get them.

A quick hit from Reuters, November 29:

Chinese electric vehicle maker BYD has requested price cuts from dozens of its suppliers, state-owned news outlet Yicai reported on Friday citing unidentified sources.

The automaker mainly sent requests to suppliers of electric control units and sensors but could send more to some of its over 8,000 suppliers in other categories, Yicai said.
BYD did not immediately respond to Reuters' request for comment.