Chinese BYD seeks supplier discounts to lower its vehicle prices globally

Chinese automotive giant BYD requested its electric vehicle suppliers to reduce costs by 10% per unit from Jan. 1, 2025.

BYD‘s move was disclosed as screenshots of an internal email widely circulated on Chinese social media platforms by Nov. 26.

According to leaked emails, BYD emphasizes the growing competition in the new energy vehicle (NEV) market in 2025 and stresses the need for its supply chain to collaborate on cost reductions to maintain competitive pricing.

The company has asked suppliers to identify potential savings and submit revised pricing by Dec. 15.

Li Yunfei, BYD’s general manager of branding and public relations, confirmed the authenticity of the email, explaining that annual price negotiations with suppliers are a standard practice in the automotive industry.

“We propose a price reduction target to suppliers based on the advantages of scaled mass purchasing. This process is not mandatory, and negotiations will determine the way forward,” Li stated on Nov. 27.

The email also highlighted that BYD sold over 3.25 million units between January and October this year and is projected to surpass 4.2 million units by year-end.

BYD attributes its continuous sales growth to technological innovation, economies of scale, and a cost-efficient supply chain, as outlined in the email.