Xin Lang Zheng Quan·2025-06-20 08:28Core Viewpoint - The automotive industry in China is experiencing extended payment terms, with an average exceeding 170 days, which places financial strain on suppliers and raises concerns about cash flow sustainability [1][3]. Industry Overview - The average payment term for domestic automotive companies is over 170 days, with some exceeding 240 days [1]. - The revised "Regulations on Payment of Funds to Small and Medium-sized Enterprises" mandates that large enterprises must pay small and medium-sized enterprises within 60 days of delivery [3]. - As of June 1, 2025, this regulation aims to alleviate the "difficulties in collection" faced by small and medium-sized enterprises [3]. Payment Terms Analysis - The automotive industry has a total of 299 listed companies with accounts payable and notes payable amounting to 1.45 trillion yuan, a year-on-year increase of approximately 11% [7]. - The calculated payment term for the automotive industry is 149.22 days, approximately 5 months [7]. - Breakdown by sub-sectors shows: - Automotive parts: 250 companies, accounts payable of 485.38 billion yuan, payment term of 147.18 days [8]. - Passenger vehicles: 8 companies, accounts payable of 763.96 billion yuan, payment term of 151.57 days [8]. - Commercial vehicles: 13 companies, accounts payable of 146.51 billion yuan, payment term of 169.09 days [8]. - Motorcycles and others: 17 companies, accounts payable of 39.63 billion yuan, payment term of 161.07 days [8]. - Automotive services: 11 companies, accounts payable of 18.12 billion yuan, payment term of 69.32 days [8]. Company-Specific Insights - Among the 8 listed passenger vehicle companies, Haima Automobile has the longest payment term of 270.41 days, significantly higher than its peers [11]. - BYD leads in revenue with 777.10 billion yuan, maintaining a payment term of 127.23 days, which is relatively short compared to others [12]. - SAIC Group and Great Wall Motors have similar payment terms of approximately 163.63 days and 163.75 days, respectively, but their trends differ [13]. - Overall, the payment terms across the automotive sector exceed the 60-day commitment, indicating ongoing challenges in improving cash flow management [13].