Core Viewpoint - The commitment of automotive companies to limit payment terms to no more than 60 days reflects a proactive response to national calls, demonstrating social responsibility and corporate accountability, which is crucial for building a collaborative and sustainable development ecosystem in the automotive industry [1] Group 1: Industry Context - The automotive industry in China is currently experiencing a critical period of high-quality development, with the Ministry of Industry and Information Technology urging companies to strengthen industry self-discipline [1] - Over 17 automotive companies, including major players like China FAW Group and BAIC Group, have pledged to shorten payment terms to suppliers, addressing the long-standing issue of extended payment cycles that have negatively impacted cash flow for smaller suppliers [1][2] - Historically, domestic automotive brands have relied on commercial acceptance bills or electronic receivables, leading to payment terms extending from 90 days to over 180 days due to competitive pressures and price wars [1][2] Group 2: Payment Terms and Supplier Impact - The prolonged payment cycles have created a "pass-the-parcel" effect throughout the supply chain, exacerbating financial pressures on automotive suppliers [2] - Many suppliers are facing intense competition during the bidding process, which has led to a decline in profit margins and increased financial strain, with some unable to sustain operations due to cash flow issues [3] - The recent implementation of the "Regulations on Payment to Small and Medium Enterprises" mandates that large enterprises must pay small and medium suppliers within 60 days, prohibiting the use of non-cash payment methods that extend payment periods [4][8] Group 3: Industry Challenges and Calls for Rationality - The automotive industry is grappling with a significant decline in profitability, with reported profits dropping by 8% year-on-year in 2024, and profit margins falling to 3.9% in the first quarter of 2025 [6][7] - The ongoing price wars have led to a deterioration of the industry ecosystem, with calls from experts and regulatory bodies for a return to rational competition and the establishment of stable, long-term relationships between manufacturers and suppliers [6][7][8] - The Ministry of Industry and Information Technology has indicated plans to intensify efforts to address "involutionary" competition in the automotive sector, aiming to optimize industry structure and ensure fair market practices [7]
“60天账期”成新标配?工信部表态支持车企落实账期新规
Zhong Guo Jing Ying Bao·2025-06-14 02:40