BYD says it sets negotiable price cut targets for suppliers

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.

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.