Sou Hu Cai Jing·2025-09-03 05:25Core Insights - The automotive industry in China is experiencing intensified price wars and a collective commitment from 17 companies to reduce supplier payment terms to no more than 60 days to alleviate cash flow pressures on component manufacturers [2][4][8] Group 1: Industry Overview - The first half of 2025 saw a significant increase in accounts payable turnover days among major automotive companies, with an average of 187.97 days, up from 175.75 days at the end of 2024, indicating a trend of extended payment periods [4][6] - Out of 18 major passenger car manufacturers, 12 experienced an increase in payment terms, while only 6 managed to shorten them, highlighting a broader industry trend towards longer payment cycles [4][5] Group 2: Company-Specific Changes - Among the companies, Xpeng Motors had the most significant reduction in accounts payable turnover days, decreasing by 63 days to 170 days, while Seres saw the largest increase, with a rise of 101 days to 266 days [5][6] - BYD's accounts payable turnover days increased by 15 days to 142 days, while NIO's increased by 23 days to 220 days, reflecting a common trend of extended payment terms across the industry [6][12] Group 3: Cash Flow and Financial Health - The cash reserves of many companies are insufficient to cover their accounts payable, with only Jiangling Motors and Haima Automotive having cash reserves that exceed their payables [10][11] - Companies like BYD and Geely are facing significant cash shortfalls, with BYD having a deficit of 805.86 million and Geely 462.61 million, indicating a critical cash flow challenge in meeting supplier payments [11][12] - The shift to a 60-day payment term has led to increased cash flow pressures, as companies like Li Auto reported a negative free cash flow of 38 million, exacerbating their financial strain [9][10]