Some Chinese suppliers to state-owned Chongqing Changan Automobile have written to the automaker after it cut their payments by 10 percent, saying they were unfairly being forced to pay for the industry's bruising price war.
The suppliers said Changan, which also has partnerships with Ford Motor Co. and Mazda Motor, told them in March that a recent wave of price cuts by its rivals had hit sales of some of its models in the world's largest auto market.
More than 40 brands have cut prices in China since January after an initial move by Tesla in a fight for market share as car demand slumps, with the ripples spreading through the wider industry.
Screenshots of the letter from Changan's suppliers in the southwestern city of Chongqing, where the company is headquartered, first circulated on Chinese social media late on Monday.
Reuters confirmed with two supplier sources familiar with the matter that the letter addressed to Changan's procurement department was sent to the company.