Hua Xia Shi Bao·2025-06-18 09:05Group 1 - The automotive industry is responding to government calls to shorten payment terms to 60 days, aiming to avoid "involution" competition and improve financial conditions for companies [2][6] - A meeting was held on June 16 by the Trading Association to support high-quality development in the automotive sector, with major automakers and underwriters participating to discuss financing needs and challenges [2][3] - Nine automakers, including FAW, SAIC, BYD, and NIO, committed to a 60-day payment term for suppliers, highlighting the industry's efforts to optimize financing environments [2][3] Group 2 - The Trading Association emphasized the introduction of new financing tools, such as technology innovation bonds and green bonds, to enhance the convenience of bond financing for automotive companies [3][5] - Green bonds are specifically aimed at funding environmentally beneficial projects, with a total issuance of 375 green bonds amounting to 188.37 billion yuan by the Shenzhen Stock Exchange by the end of 2024 [3][4] - The automotive industry is capital-intensive and requires long-term funding for R&D and production, especially during the transition to electrification and smart technologies [4][5] Group 3 - The commitment to a 60-day payment term is part of a broader effort to alleviate financial pressure on upstream suppliers and stabilize the supply chain [6][8] - GAC Group has pledged to complete dealer rebate payments within two months, which is crucial for maintaining dealer stability and ensuring customer service [6][7] - The automotive industry is experiencing significant challenges, with over 4,000 dealers exiting the market in 2024 due to financial pressures, highlighting the need for improved cash flow and support [7][8] Group 4 - The Trading Association aims to strengthen bond market infrastructure and product innovation to better serve the automotive industry's financing needs, promoting a shift towards intelligent, high-end, and green development [5][8] - The ongoing support from the bond market is expected to facilitate a virtuous cycle of reduced payment terms, improved financing, and innovation within the automotive sector [8]