Core Viewpoint - The recent decision by major Chinese automotive companies to unify supplier payment terms to within 60 days is a significant step towards stabilizing the supply chain and promoting healthy development in the automotive industry [2][4]. Group 1: Industry Changes - Major automotive companies, including BYD, Changan, FAW Group, Dongfeng, and GAC, have announced a unified payment term of no more than 60 days for suppliers, aligning with the new regulations set to take effect on June 1, 2025 [2]. - The average payment term for Chinese automotive companies was previously around 182 days, with some exceeding 270 days, forcing suppliers to finance their operations for up to a year [2][3]. Group 2: Financial Implications - Shortening the payment term from 180 days to 60 days will enhance the cash flow efficiency for suppliers by 200%, significantly alleviating their financial pressure and reducing the need for borrowing [5]. - The high debt levels of many Chinese automotive companies, with some owing suppliers billions, may create short-term financial strain as they commit to the new payment terms [5]. Group 3: Industry Dynamics - The move to shorten payment terms is seen as a necessary measure to foster healthy competition and development within the automotive supply chain, shifting the focus from cost-cutting to innovation and efficiency [5]. - The automotive industry has been characterized by unhealthy practices, including the exploitation of suppliers through extended payment terms, which has led to financial distress for some suppliers [3][4].

Market Overview - In May, the automotive market showed strong performance despite being a traditionally slow season, driven by the "two new" policies and various consumption promotion measures [1] - Retail sales of new energy passenger vehicles reached 1.027 million units in May, representing a year-on-year increase of 28.9% and a month-on-month increase of 13.6% [1] - Cumulatively, sales for the first five months of the year reached 4.357 million units, up 34.2% year-on-year [1] Brand Performance - BYD maintained its leading position with retail sales of 293,021 units in May, showing a year-on-year growth of 9.2% and a month-on-month growth of 9.0% [1] - Geely Automotive ranked second with sales of 130,398 units in May, achieving a year-on-year growth rate exceeding 100% [2] - The top 10 new energy vehicle brands in May saw changes, with Hongmeng Zhixing and Seres Automotive entering the list, while Xiaomi and XPeng dropped out [1] Notable Models - The A0-class pure electric vehicle, Geely Xingyuan, significantly contributed to Geely's sales growth [2] - Hongmeng Zhixing's Aito series, particularly the Aito M9 and M8 models, achieved high delivery numbers, with M9 delivering 15,481 units and M8 delivering 12,116 units in May [2] - The Aito brand's strong performance in the high-end market solidified Hongmeng Zhixing's position and boosted Seres Automotive's sales [2]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The high-end strategy of automotive companies is categorized into two types: those with clear advantages focusing on their strengths and those adopting benchmarking strategies [4][58] - The tightening regulations on intelligent driving are leading to a shift in marketing strategies among automotive companies, emphasizing safety and compliance [28][59] - Leading intelligent driving suppliers are expanding their product matrices and customer bases through integrated hardware and software solutions [60] Summary by Sections 1. Leveraging Strengths for Brand Advancement - Automotive companies like Li Auto, Great Wall Motors, and Xiaomi are focusing on their unique strengths to enhance brand positioning [4][58] - Li Auto's MEGA model maintains a flagship position with a price above 500,000 yuan, while Great Wall Motors continues to deepen its off-road market with the launch of the Tank 300 [8][19] - The introduction of new large SUVs during the 2025 Shanghai Auto Show aims to capture market share and elevate brand value [9][21] 2. Strengthening Safety and Regulatory Compliance - The intelligent driving sector is entering a period of stringent regulation, with new guidelines affecting marketing and OTA upgrades [28][29] - Companies are adjusting their marketing strategies to highlight safety features and avoid misleading claims about autonomous capabilities [35][36] 3. Leading Intelligent Driving Suppliers: Integrated Solutions and Rich Product Matrix - Major suppliers like Huawei and Horizon Robotics are offering diverse solutions across various price segments, with Huawei's ADS 4 and Horizon's HSD series [42][60] - High-end products are undergoing further iterations, with Huawei's ADS 4 flagship version introducing commercial L3 solutions [46][60] - The rapid expansion of user bases and significant R&D investments are leading to economies of scale for these suppliers [50][60] 4. Investment Recommendations - The report recommends focusing on automotive companies with distinctive brand advantages and ongoing development, specifically highlighting Li Auto, Great Wall Motors, and Xiaomi [58][60] - It also suggests looking at companies benefiting from the scale of new energy vehicles, such as BYD and Geely, and suppliers like Horizon Robotics and Fuyao Glass that are poised to gain from the proliferation of intelligent driving technologies [60]

Core Viewpoint - The automotive industry is entering a significant phase of reducing payment terms to suppliers, with multiple major companies committing to a maximum payment period of 60 days to enhance supply chain efficiency and support high-quality industry development [1][19]. Group 1: Company Announcements - GAC Group announced a commitment to maintain supplier payment terms within 60 days to ensure efficient capital turnover and promote high-quality development in the industry [1]. - China FAW Group emphasized its role as a major state-owned enterprise, viewing suppliers as close partners and committing to a 60-day payment term to support market stability and high-quality development [5][7]. - Dongfeng Motor Corporation declared its alignment with national policies to support small and medium enterprises by standardizing payment terms to 60 days [8][11]. - Seres Group responded to the automotive industry's call for fair competition and healthy development, stating that it has always adhered to a 60-day payment term with suppliers [12][13]. - Geely Auto Group announced its commitment to a 60-day payment term to enhance capital turnover efficiency and stabilize the supply chain, in response to national regulations [16][19]. Group 2: Regulatory Context - The State Council's revised "Regulations on Ensuring Payment to Small and Medium Enterprises" stipulates that large enterprises must pay small and medium enterprises within 60 days of delivery, aligning with the commitments made by the automotive companies [21]. - The China Automotive Industry Association's recent initiative highlighted the negative impact of price wars on the industry, reinforcing the need for timely payments to maintain supply chain stability [21][22].

作出"支付账期不超过60天"承诺的车企不断扩围。 在政府发力整治汽车行业"内卷式"竞争的背景下，10日晚， 一汽、东风、广汽、赛力斯 四家车企发表声明称，承诺将支付账期控制在60天以内。 10日晚23时许， 吉利汽车集团 对外宣布，将供应商支付账期统一至60天内，以加速产业链资金周转效率，保障产业链供应链稳定，发挥领军企业担当，促进 汽车产业高质量发展。 23时30分左右， 长安汽车 发表声明称， 携旗下长安启源、长安凯程、深蓝汽车、阿维塔向行业宣布，将供应商支付账期统一至60天内，以切实行动践行央企 社会责任。 11日凌晨1时28分， 比亚迪 宣布跟进，承诺将供应商支付账期统一至60天内。 比亚迪在声明中表示，将以切实行动推动中国汽车产业高质量发展，并继续通过技术创新与管理优化，携手上下游伙伴共同推动中国汽车产业行稳致远。 随后，"比亚迪宣布60天内付款""账期不超过60天意味着什么"等词条登上微博热搜。 上午7时58分， 奇瑞集团 也发文宣布跟进，承诺将账期统一至60天内，践行企业担当，促进汽车产业高质量发展。 10时6分， 小米汽车 承诺，坚决落实国家及相关主管部门就促进汽车产业高质量发展、保障供应链稳 ...

Core Viewpoint - Multiple automotive companies in China have committed to unifying their supplier payment terms to a maximum of 60 days, responding to national policies aimed at stabilizing the supply chain and promoting high-quality development in the automotive industry [1][15]. Group 1: Company Commitments - Xiaomi Auto has pledged to implement a 60-day payment term for suppliers to enhance supply chain stability and support high-quality development in the automotive sector [5]. - Geely Auto Group announced a similar commitment to unify supplier payment terms to 60 days, aiming to accelerate capital turnover efficiency within the industry [5]. - Changan Automobile, along with its subsidiaries, has also committed to a 60-day payment term to fulfill its social responsibility and support the efficient flow of funds for small and medium-sized enterprises [8]. - BYD has declared its intention to unify supplier payment terms to 60 days, aligning with national directives to stabilize the supply chain and promote the healthy development of small and medium enterprises [9]. - Chery Group has decided to implement a 60-day payment term starting June 10, to enhance capital turnover efficiency and ensure supply chain stability [11]. - XPeng Motors has committed to a 60-day payment term to support the healthy development of small and medium enterprises [13]. - BAIC Group has promised to strictly adhere to a 60-day payment term for all eligible partners, eliminating unreasonable settlement methods that increase cash flow pressure on suppliers [14]. - Leap Motor has reiterated its commitment to the "60-day payment" principle, ensuring efficient payment processes [14]. Group 2: Industry Response to National Policies - The automotive companies' unified commitment to a 60-day payment term is a proactive response to the State Council's revised "Regulations on Ensuring Payment to Small and Medium Enterprises" and the China Association of Automobile Manufacturers' initiative to maintain fair competition and promote healthy industry development [16][17]. - The revised regulations stipulate that large enterprises must pay small and medium enterprises within 60 days of delivery, emphasizing the importance of timely payments to support the financial health of smaller suppliers [17].

A股汽车整车股午后走强，江淮汽车午后封板涨停，上汽集团、北汽蓝谷、比亚迪、赛力斯等跟涨。消 息面上，近日，广汽集团、中国一汽、东风汽车、赛力斯、吉利汽车、比亚迪汽车、小米汽车等多家车 企集体发声，承诺供应商账期不超60天。 订阅A股市场资讯 +订阅 ...

Group 1 - Major automotive companies have committed to standardizing supplier payment terms to within 60 days, responding to the revised "Regulations on Ensuring Payment to Small and Medium-sized Enterprises" issued by the State Council [2][4] - Companies such as China FAW, Dongfeng Motor Group, Changan Automobile, and GAC Group have publicly announced their commitment to this payment term [2] - BYD, amidst public scrutiny, also pledged to unify supplier payment terms to 60 days to support the healthy development of small and medium enterprises [2][4] Group 2 - SAIC Motor Group not only committed to the 60-day payment term but also stated it would not use commercial acceptance bills to avoid increasing financial pressure on suppliers [3] - The revised regulations, effective from June 1, 2023, specify that large enterprises must pay small and medium enterprises within 60 days of delivery [4] - Suppliers have expressed the need for clarity on the payment process, specifically how the 60-day period is calculated, to avoid complications [4] Group 3 - The automotive supply chain financial platforms, such as BYD's DiChain and Great Wall's Great Wall Chain, are prevalent among major automotive companies, providing financing options for upstream and downstream partners [5] - Analysts highlight that the existence of these financial platforms raises concerns about whether companies are intentionally extending payment terms to shift financial burdens onto suppliers [5] - The automotive parts industry has seen an increase in accounts receivable turnover days, indicating potential cash flow issues for suppliers [6]

Group 1 - Toyota leads the automotive market with a value of 2414.31 billion, showing an increase of 17.02% [2] - BYD follows with a value of 1549.88 billion, reflecting a growth of 23.66% [2] - Ferrari has a market value of 866.76 billion, up by 12.98% [2] Group 2 - General Motors is valued at 470.43 billion, with a growth of 9.63% [3] - Ford has a market value of 414 billion, increasing by 10.14% [3] - Honda's value stands at 405.07 billion, with a slight increase of 1.09% [3] Group 3 - Changan Automobile is valued at 155.79 billion, with a minor increase of 0.36% [4] - Nissan has a market value of 87.12 billion, showing an increase of 2.27% [4] - NIO's value is at 79.91 billion, reflecting a growth of 4.4% [4]

Core Viewpoint - Multiple automotive companies in China have collectively committed to a payment term of no more than 60 days for suppliers, responding to national policies aimed at stabilizing the supply chain and promoting high-quality development in the automotive industry [1][15]. Group 1: Company Commitments - BYD announced a unified payment term of 60 days for suppliers, aligning with national directives to support the stability of the supply chain and promote the healthy development of small and medium-sized enterprises [7]. - Xiaomi Auto, Geely Auto Group, Changan Automobile, Chery Group, Xpeng Motors, and BAIC Group have all made similar commitments to ensure that supplier payment terms do not exceed 60 days [2][3]. - GAC Group, China FAW, Dongfeng Motor, and Seres also pledged to shorten supplier payment terms to within 60 days, emphasizing the importance of efficient capital turnover in the supply chain [3]. Group 2: Industry Context - The commitment to a 60-day payment term is a response to the State Council's revised "Regulations on Ensuring Payment to Small and Medium-sized Enterprises," which will take effect on June 1, 2025, mandating that large enterprises pay small and medium-sized suppliers within 60 days [16]. - The Chinese Automobile Industry Association has advocated for maintaining fair competition and promoting healthy industry development, particularly in the context of the rapid transformation and upgrading of the automotive sector [17].