BYD (BYDDY) is pushing its suppliers to cut costs amid the electric vehicle price war

Accordingly, China’s electric vehicle market leader BYD (BYDDY) is urging its suppliers to reduce costs CNN. In fact, the company is calling for a 10 percent reduction in parts in 2025 to remain competitive in the ongoing price war sparked by electric giant Tesla (TSLA) two years ago. In a leaked letter signed by an executive, BYD called for supply chain collaboration to improve cost efficiency amid fierce competition in the electric vehicle market. Although BYD confirmed that price negotiations are common, the company stressed that the reductions were targets, not targets, and that they were up for discussion.

China’s car market, the world’s largest, is crowded and more than 200 electric vehicle makers are facing oversupply and fierce competition. Not surprisingly, experts predict that many smaller companies will not survive as market leaders like BYD sacrifice margins to dominate. In fact, BYD has managed to secure a 36.1% share of China’s electric vehicle market thanks to its integrated supply chain.

The cost-cutting measures also raise concerns at a time when China’s economy is slowing, with some fearing suppliers could cut wages in an already weak labor market. Interestingly, BYD’s actions became a trending topic on Weibo (WB), drawing criticism for its impact on workers.

Is BYDDY stock a buy?

Using the TipRanks technical analysis tool, indicators appear to be pointing to a neutral outlook. In fact, the summary section shown below shows that nine indicators are bullish, compared to two neutral and eleven bearish indicators.

You can find more technical analysis from BYDDY here