Top Chinese electric-vehicle (EVs) makers from BYD to Xpeng are taking longer to settle payments with suppliers, indicating stress in the industry because of slowing sales and mounting discounts, reports the South China Morning Post. Shenzhen-based BYD, the world’s largest EV maker, took 275 days to pay supply-chain vendors in 2023, compared with 219 days in 2022, and 198 days in 2021, data compiled by Bloomberg shows.
Shanghai-headquartered Nio needed 295 days to clear accounts payable last year, increasing from 247 days in 2022, and 197 days in 2021.
The time Guangzhou-based Xpeng took to honour its obligations to suppliers rose to 221 days last year, from 208 days in 2022, and 179 days in 2021.