Chinese EV Makers Struggle with Supplier Payments Amid Intense Competition
Nio, Xpeng, and BYD face prolonged payment cycles as price wars and cooling demand strain China's electric vehicle market.
- Nio and Xpeng are taking over 200 days to pay suppliers, significantly longer than Tesla's 101 days.
- BYD, the world's largest EV maker, has also seen its payment cycles extend to 275 days in 2023.
- The fierce price competition and reduced demand have led to substantial financial losses for Chinese EV makers.
- The slowdown in the EV market is causing liquidity issues and potential disruptions in the supply chain.
- Smaller suppliers are particularly vulnerable, with some facing bankruptcy due to delayed payments.
Benzinga 
South China Morning Post 
Financial Post 
