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Auto Giants Pay Suppliers Faster Amid Price War
12 Feb
Summary
- Most Chinese automakers met 60-day payment deadlines.
- Average supplier payment time reduced to 54 days.
- Pledges made in June amid industry price war.
Major Chinese automakers have largely met their commitments to accelerate supplier payments. The China Association of Automobile Manufacturers confirmed that most companies are now paying within the 60-day timeframe.
Seventeen manufacturers, including prominent names like BYD, Chery, SAIC, and Xiaomi, had issued these pledges in June. This action was a response to demands from steelmakers concerning lengthy payment cycles and to regulatory pressures during an intense industry price war.
An investigation by the auto association revealed that supplier payments are now averaging around 54 days. Notably, four unnamed automakers have achieved even quicker settlement times, paying within an average of 50 days.
