China Association of Automobile Manufacturers: The vast majority of key automakers have reduced payment terms to within 60 days

The China Association of Automobile Manufacturers released a research report on the implementation of payment term commitments by key automotive suppliers. The survey results show that the vast majority of key automakers have shortened their payment terms to within 60 days, with an average payment period of approximately 54 days (about 10 days shorter than the same period last year), including four companies with an average payment period of less than 50 days. Regarding payment methods, 15 companies use only cash or bank acceptance bills, some companies use commercial acceptance bills, and two companies use electronic accounts payable certificates with a commitment to phase them out. Five companies have a cash payment ratio exceeding 50%, and two companies exceed 70%. In terms of preferential policies for small and medium-sized enterprises (SMEs), 17 key companies calculate SME payment periods from the delivery and acceptance of goods, with the entire process from acceptance to payment not exceeding 60 days. Fourteen companies implement additional preferential policies for SMEs, two companies pay 100% cash for SME payments, and five companies allow SMEs facing cash flow issues to apply for early payment.