### BYD Intensifies Competition in China’s EV Market, Seeks Supplier Price Cuts

In a bid to escalate the ongoing price war in China’s electric vehicle (EV) market, BYD has reportedly requested its suppliers to lower their prices in the coming year. This information came to light through a leaked letter circulating on social media platforms. A screenshot of an email from BYD, shared on Weibo, revealed a demand for a "10% price cut from an unnamed supplier from January," according to Reuters.

Responding to the leak, BYD's Public Relations and Branding Director, Li Yunfei, clarified in a Weibo post that annual negotiations with suppliers are commonplace in the automotive industry. He emphasized that while BYD has set price reduction targets, these are not inflexible mandates and can be discussed further.

For the past two years, BYD has been at the forefront of an aggressive price war in China’s EV market, a move that has strained smaller companies and triggered consolidation within the industry. Major automotive players like Volkswagen and Stellantis have responded by collaborating with Chinese brands such as Xpeng and Zhejiang Leapmotor to develop EVs. Meanwhile, companies like HiPhi and WM Motor have faced bankruptcy.

BYD's market dominance is evident as it ramps up production and boosts its workforce significantly. The company has increased production by nearly 200,000 units and hired close to 200,000 new employees over the past three months to meet rising demand. Earlier this year, BYD led a series of industry-wide price cuts, substantially reducing prices on its popular models, thereby growing its market share and pressuring weaker competitors.

BYD is currently China's best-selling car brand, having sold approximately 3.2 million plug-in hybrids and battery electric vehicles (BEVs) this year, including a record-breaking 500,000 vehicles in October alone. These sales account for more than a third of the total EV and plug-in hybrid sales in China for the year. The company aims to achieve sales of around 4 million units by the end of the year.

The financial performance of BYD has also been impressive. In the July-September quarter, the company reported a net profit of 11.6 billion yuan ($1.63 billion). Additionally, BYD’s third-quarter revenue of $28.24 billion surpassed Tesla’s $25.2 billion for the same period.

Although more than 90% of BYD's sales are currently in China, the company is proactively expanding into Europe and other international markets, despite challenges such as higher tariffs. This year, BYD plans to double its exports to 450,000 vehicles, reinforcing its growing influence in the global EV market.