China’s byd promised to give strong support to supplier payment initiative

The world’s leading electric vehicle manufacturer BYD has taken a big step towards further strengthening the relationship with its suppliers. The company has announced that it will give full support to the “Suppliers Payment Initiative” of the Chinese government. The aim of this initiative is to get timely payment to small and medium supply companies and their financial health remains better.

Byd statement

BYD has clearly stated that suppliers are the backbone of their success and the company wants them to be financially safe and stable. The government wants to ensure the challenges that have come up in the Chinese economy in recent months that small suppliers do not have to face the cash flow problem. This promise of Byd is considered an important step in this direction.

Why worry about suppliers?

The automobile and electric vehicle industry in China is growing rapidly. But often small supply companies complain of delay in payment from large auto companies. This affects their work capacity and sometimes they have to depend on the bank loan. Payment Initiative aims to remove this problem so that small suppliers can also last long and invest on innovation.

Government role

The Chinese government had recently directed companies to ensure timely payment to suppliers. Especially big companies have been given the responsibility to create trust and transparency in their network. This initiative is considered important not only for economic strength, but also for keeping employment and production capacity stable.

Impact on industry

Experts say that when big players like Byd are serious about the supply system, it affects the entire industry. This will also increase the pressure on other companies to pay on time. The result will be that the supply chain will be strong, production costs will be balanced and delivery of vehicles will be reached on time to consumers.