BYD has announced record-breaking revenue for the first half of 2025, reporting ¥371.3 billion, according to a report released August 30th. This marks the first time the Chinese automaker’s half-year revenue has surpassed that of Tesla, signaling a potential shift in the global electric vehicle landscape.
The report highlighted BYD’s commitment to strengthening collaboration across the entire industry value chain. It emphasized proactive coordination across departments and functions to optimize payment terms and channel management. BYD frames these efforts as fostering a mutually beneficial ecosystem for suppliers, distributors, and other stakeholders.
Notably, BYD underscored that its days payable outstanding (DPO) – a key metric reflecting the average time it takes to pay its suppliers – is already at a relatively low level within the automotive industry. The company stated that it has further reduced its DPO compared to the same period in 2024. This suggests BYD is prioritizing prompt payments to its suppliers, a practice they portray as essential for driving industry stability and sustainable growth.
This announcement comes on the heels of a June 2025 commitment by BYD and 16 other leading Chinese automakers to adhere to a “no more than 60-day” payment term for suppliers.
This move is seen as a direct response to increasing competitive pressures within the burgeoning EV market. As competition intensifies, the strain has trickled down the supply chain. Concerns have risen about extended payment terms to suppliers, leading to potential cash flow difficulties and hindering innovation and long-term sustainability.
The voluntary promise by automakers to limit payment terms is a significant step towards building a collaborative “vehicle-component” ecosystem that fosters joint development and promotes the healthy, sustainable growth of the automotive industry.
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