BYD makes an offer you can’t refuse
On Wednesday, a screenshot of an email to an anonymous supplier purporting to be from the Shenzhen-based automotive giant circulated on social media. It was requested 10% price reduction from January. From a post published on Weibo on the same day by Li Yunfei, director of public relations and branding at BYD shows that “annual negotiations with suppliers are common practice in… automotive industry“. The company only presents the contractors with the scope of the proposed “price reduction”, which is not obligatory and may be subject to further negotiations.
Volkswagen and Stellantis join forces with Chinese companies
Price war on Chinese car marketwhich has been going on for at least two years, has triggered a wave of consolidation or pushed smaller players to the edge of the abyss. Western car manufacturers such as Volkswagen and Stellantisjoined forces with Chinese producers Xpeng and Zhejiang Leapmotor Technologyto use their experience in the production of electric vehicles. Electric car brand HiPhi and a Shanghai company WM Motor they lead bankruptcy proceedings.
The market is still favorable to BYD
BYD has so far weathered the turmoil largely unscathed and has even strengthened its market position. The company carried out a cycle of industry price reductions earlier this year, gaining market shares and cutting down weaker rivals.
Better than Tesla
The automaker continues to achieve record sales and revenue levels. Last quarter, BYD’s revenues topped revenues for the first time Teslaa gross margin increased to 21.9%, which is the highest level in a year.
Record October
The electric vehicle maker has become China’s best-selling car brand, selling about 3.2 million this year plug-in hybrid vehicles and electrical. Of these, a record half a million cars were purchased in October. By the end of the year, the company may sell at least 4 million cars.
