商业洞察·2025-08-17 09:22Core Viewpoint - The article discusses the implementation of a 60-day payment term for suppliers by major automotive companies in China, highlighting both the progress made and the challenges faced in adhering to this commitment [3][5]. Group 1: Supplier Payment Practices - The Ministry of Industry and Information Technology (MIIT) reported that companies like FAW, GAC, and Seres have successfully implemented the 60-day payment term through process optimization [5][7]. - However, the execution of this commitment varies across the industry, with some suppliers reporting that the actual practices have not changed despite official notifications [7][9]. - Many suppliers express skepticism about the real impact of the 60-day term, citing operational challenges and a lack of proactive communication from automotive companies [8][9]. Group 2: Industry Payment Dynamics - The average accounts payable turnover days for listed automotive companies is projected to be 182 days in 2024, indicating that suppliers often wait six months to a year for payment [11][12]. - The traditional payment model involving long payment terms and commercial acceptance bills has become a norm, further extending the actual payment cycle for suppliers [11][12]. - The financial strain on automotive companies is evident, with major firms like BYD and SAIC having significant accounts payable, which constitutes over 55% of their current liabilities [12][13]. Group 3: Challenges to Implementing 60-Day Terms - The successful implementation of the 60-day payment term hinges on balancing the cash flow needs of automotive companies with the operational needs of suppliers [15][16]. - Structural imbalances in the supply chain, where larger companies dominate, create pressure on smaller suppliers to accept unfavorable terms [16][17]. - The automotive industry is facing declining profit margins, with the average profit rate dropping from 7.3% in 2018 to 4.3% in 2024, complicating the financial landscape for companies to adhere to the new payment terms [16][17].