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BYD says it sets negotiable price cut targets for suppliers

Published 11/26/2024, 11:28 PM
Updated 11/27/2024, 12:36 AM
© Reuters. FILE PHOTO: Members of the press and the general public check out the Atto 3 electric SUV made by Chinese carmaker BYD, at the Fully Charged Live electric vehicle trade show in Farnborough, Britain, April 28, 2023. REUTERS/Nick Carey/File Photo
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BEIJING (Reuters) -An executive from BYD (SZ:002594) said on Wednesday the Chinese automaker sets price reduction targets for suppliers when making large-scale purchases but these are negotiable and not mandatory.

The comments from Brand and Public Relations Department general manager Li Yunfei on his Weibo (NASDAQ:WB) account followed reports the Chinese automaker had told a supplier to cut prices by 10%.

He said annual price negotiations with suppliers were a common industry practice.

A screenshot of an email sent by BYD to a supplier asking it to reduce its prices by 10% from Jan. 1 was widely circulated on Chinese social media and reported by outlets including Phoenix Finance.

© Reuters. FILE PHOTO: Members of the press and the general public check out the Atto 3 electric SUV made by Chinese carmaker BYD, at the Fully Charged Live electric vehicle trade show in Farnborough, Britain, April 28, 2023. REUTERS/Nick Carey/File Photo

Li did not refer to the email in his post.

Reuters was unable to verify the email, which was dated Nov. 26. BYD did not immediately respond to a request for comment.

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