BYD and Xpeng face dealer backlash over payment delays in Germany

German automotive dealers for Chinese electric vehicle manufacturers BYD and Xpeng are reporting significant payment delays, with some waiting over six months for contractually agreed bonuses and subsidies. These outstanding claims have reportedly reached six-figure sums per location, causing a crisis of confidence among retail partners.

In the case of Xpeng, some dealers describe the payment practices as “elendig” (miserable), noting that they are owed hundreds of thousands of euros in leasing subsidies and quarterly bonuses. For BYD, representatives report that even small invoices can face up to nine internal approval steps, some of which are processed at headquarters in China.

Both manufacturers attribute these delays to the rapid pace of their expansion in the European market. The high volume of new vehicle registrations has reportedly placed immense administrative and financial pressure on their internal processes. While BYD has stated it is working to simplify procedures and has strengthened its German team, some partners have put planned investments in showrooms and service capacity on hold due to the uncertainty.