(Yicai) Nov. 29 -- Tesla will continue to invest in research, development, and production to provide consumers with better products and prices while safeguarding the rights and interests of suppliers, according to the US electric carmaker’s vice president.

Only by establishing win-win cooperation with suppliers, increasing efficiency, and reducing costs through technological innovation can consumers continue to receive the best products and the company prosper, Grace Tao said on Chinese social media platform Weibo today.

Tesla shortened the payment cycle for supply chain partners this year to only about 90 days, Tao noted, adding that more than 95 percent of the components the carmaker uses at its Shanghai factory come from local suppliers.

Tao’s statement comes a day after Chinese new energy vehicle giant BYD reportedly asked its entire supply chain to jointly and continuously reduce costs to enhance the competitiveness of its passenger vehicles. Therefore, the company requested that suppliers lower their product prices by 10 percent from next year.

Later, BYD’s brand and public relations general manager said the Shenzhen-based firm sets price reduction targets for suppliers when making large-scale purchases, but these are negotiable and not mandatory.

According to Tesla’s financial statement, the company likely had a payable turnover period of 64 days. Meanwhile, the figures for its main Chinese competitors BYD, Li Auto, Nio, Leapmotor, and Xpeng Motors were 146 days, 193 days, 194 days, 198 days, and 274 days, respectively.

Chinese auto part suppliers are facing increasingly stronger pressure because of the price war raging in the domestic automotive market for two years. In addition to meeting carmakers’ requests for lower prices, suppliers now also have to deal with the longer payment cycles.

Editor: Dou Shicong, Futura Costaglione