Chinese electric vehicle manufacturer BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) has reportedly asked dozens of its suppliers for price reductions, according to the state-owned media outlet Yicai.
The requests primarily target suppliers of electric control units and sensors, though Yicai suggests BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) would expand these demands to other categories among its more than 8,000 suppliers.
The move highlights pressures within the electric vehicle industry to manage costs amid rising competition and supply chain challenges.
BYD, one of the world's largest electric vehicle makers, has not yet commented on the report, which cites unnamed sources.
This development comes as automakers worldwide face increasing demand for affordability in their electric vehicle offerings while navigating tight profit margins.