BYD Asks Suppliers to Cut Prices

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A rundown of the news making headlines in and around China:

BYD requests discount: A screenshot showing China’s top electric-vehicle (EV) firm BYD Co. Ltd. asking its suppliers to give it a hefty 10% discount starting from January has gone viral. The image, which Caixin has confirmed is authentic, shows an email the carmaker sent to its suppliers, telling them that the EV market will enter an “elimination game” in 2025 and price cuts would help BYD come out on top. BYD’s public relations chief responded to the incident, saying price negotiations are normal. It's raised concerns that the car industry’s brutal price war has squeezed even the biggest players and may lead to parts suppliers cutting corners on quality to stay competitive.

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BYD is seeking a 10% discount from suppliers to compete in the EV market, sparking concerns over a potential price war affecting quality.
Pony.ai listed on Nasdaq, aiming to raise up to $452 million, while GAC acquired control over GAC-Hino to focus on electric trucks.
Long Covid affects 10-30% of over 68,000 surveyed in China, with common symptoms including fatigue and brain fog, especially in women and repeat infections.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd., China's top electric vehicle firm, requested a 10% discount from its suppliers starting January, citing an upcoming "elimination game" in the EV market by 2025. This move, confirmed by Caixin, highlights concerns about the industry’s price war potentially affecting quality. BYD's public relations chief referred to the discount request as part of normal price negotiations.

SAIC Volkswagen Automotive Co. Ltd.: SAIC Volkswagen Automotive Co. Ltd., a joint venture between state-owned SAIC and Volkswagen, will continue operations until at least 2040. The company has faced declining sales due to challenges in adapting to the Chinese market and the rise of EVs. In response, SAIC Volkswagen plans to transition from simply importing technology to co-creating technology with its partners.

Pony.ai: Pony.ai, a Chinese autonomous driving technology company, recently listed on the Nasdaq, potentially raising up to $452 million. Founded in 2016, the company focuses on fully autonomous robotaxis, robotrucks for freight, and leasing its technology to others. It partners with major carmakers like Toyota and operates over 250 robotaxis in China, offering commercial services in several major cities. The company has yet to achieve profitability.

Toyota Motor Corp.: Toyota Motor Corp. is mentioned as a major partner of Pony.ai, a Chinese autonomous driving technology developer. Pony.ai, which recently listed on Nasdaq, has deployed over 250 robotaxis and focuses on fully autonomous vehicles, having never been profitable.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd., a state-owned carmaker, has taken control of its joint venture, GAC-Hino, with Japanese commercial-vehicle maker Hino. Previously focusing on the high-end truck segment, GAC now plans to target the fast-growing electric truck market. This shift includes launching its T9 electric heavy-duty truck in 2025, following GAC becoming the majority shareholder in September.

Hino: Hino is a Japanese commercial-vehicle maker involved in a joint venture with state-owned Guangzhou Automobile Group Co. Ltd. (GAC). The venture, named GAC-Hino, previously targeted the high-end truck segment with limited success. GAC recently became the majority shareholder and plans to focus more on the electric truck market, including the T9 electric heavy-duty truck set to launch in 2025.

Bytedance: Bytedance, owner of TikTok, is suing a former intern, surnamed Tian, who allegedly sabotaged an AI project. The lawsuit, accepted by a Beijing court, demands over 8 million yuan in damages. The intern reportedly altered code due to dissatisfaction with resource allocation among internal teams. Tian is a doctoral student at Peking University's School of Information Science and Technology.

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