SAIC MOTOR(SH:600104) Jing Ji Guan Cha Wang·2025-09-15 06:35Core Viewpoint - The automotive industry in China is set to benefit from a new policy aimed at improving supply chain management, addressing long-standing issues such as delayed payments and supply chain pressures through the "Supplier Payment Norms Initiative" released by the China Association of Automobile Manufacturers [1][2]. Group 1: Policy Details - The initiative outlines operational standards for key processes including order confirmation, delivery and acceptance, payment and settlement, and contract duration [2][3]. - It emphasizes that payment terms for suppliers should not exceed 60 calendar days from the date of delivery and acceptance, with provisions for monthly reconciliations [3][4]. - The initiative encourages the establishment of long-term cooperative relationships between automakers and suppliers, with contracts lasting no less than one year to enhance stability and efficiency [3][4]. Group 2: Industry Impact - The initiative aims to alleviate cash flow pressures on suppliers, particularly small and medium-sized enterprises, by promoting timely payments and reducing disputes over payment terms [4][5]. - Major automotive companies, including Dongfeng Motor Group and SAIC Motor Corporation, have publicly supported the initiative and committed to implementing its guidelines to foster a collaborative ecosystem [5][6]. - The initiative is expected to enhance the resilience and competitiveness of the automotive supply chain, particularly in the context of rapid changes in the electric vehicle sector [1][6]. Group 3: Company Responses - Companies like Chery and BYD have already taken steps to align their payment practices with the initiative, focusing on reducing payment periods and enhancing supplier relationships [6][7]. - Changan Automobile has implemented a payment scheme that ensures compliance with the 60-day payment commitment, showcasing a structured approach to supplier payments [7]. - The initiative is seen as a significant move towards stabilizing the automotive supply chain and promoting high-quality development within the industry [4][5].