The world’s largest manufacturer of electrified vehicles says it regularly requests price reductions from key suppliers as part of its annual negotiations

BYD Co. has asked suppliers to accept price cuts next year in a signal the Chinese electric vehicle maker is preparing for the brutal price war in the world’s biggest auto market to intensify.

BEIJING (Reuters) -Chinese automaker BYD is asking its suppliers to cut their prices, in a sign that a brutal price war in the world's largest auto market is set to escalate. Citing a leaked email dated Nov.

China’s top maker of electric vehicles (EV) wants to pay a lot less for car parts in the new year, a demand that signals there is no end in sight to a vicious price war nor economic gloom marked by lower wages and uncertain prospects.

Western automakers such as Volkswagen and Stellantis have teamed up with Chinese manufacturers Xpeng and Zhejiang Leapmotor Technology to try to leverage their EV expertise, while premium EV brand HiPhi and Shanghai-based WM Motor are mired in bankruptcy proceedings.

SAIC Motor Corp.’s Maxus brand has joined market leader BYD Co. in seeking a 10% price cut from suppliers, another sign China’s auto price war will continue into next year.

BYD moves to shield itself from looming US tariffs as President-Elect Trump threatens new import taxes on Chinese, Canadian, and Mexican goods. The China-based EV giant has reportedly ordered suppliers to slash costs by 10% starting in 2025.