Core Insights - The Chinese automotive market is experiencing significant policy and industry dynamics, with initiatives aimed at improving supplier payment practices and addressing inventory levels [1][2][3] Group 1: Supplier Payment Practices - The China Automotive Industry Association (CAAM) released a guideline on supplier payment practices, focusing on key aspects such as order confirmation, delivery and acceptance, payment and settlement, and contract duration [2] - The Ministry of Industry and Information Technology (MIIT) emphasized the importance of shortening payment terms to enhance operational efficiency and foster long-term cooperation between automakers and suppliers [3] Group 2: Inventory Levels - As of the end of August 2025, the national passenger car inventory stood at 3.16 million units, a decrease of 130,000 units from the previous month, indicating a reduction in dealer pressure [6] - The inventory level represents a 42-day supply, down by 4 days from the previous month, with manufacturer inventory accounting for 23.9% of the total [6] Group 3: Strategic Collaborations - Huawei and BAIC have deepened their collaboration on the "Enjoy" brand, forming a strategic community that will invest 20 billion yuan over the next three years, focusing on dedicated teams and resources [3] - Zeekr Technology's shareholders approved a merger agreement with Geely Automobile, with 94.2% voting in favor, leading to Zeekr becoming a wholly-owned subsidiary of Geely [5] Group 4: Regulatory Developments - MIIT is seeking public input on mandatory national standards for intelligent connected vehicles, specifically for combined driving assistance systems, which will enhance safety and regulatory compliance [7][11] - The new standards aim to align with international regulations and improve product safety, thereby supporting the overall safety of road traffic [11] Group 5: Electric Vehicle Infrastructure - As of the end of August 2025, China's electric vehicle charging infrastructure reached 17.348 million units, marking a year-on-year increase of 53.5% [17] - Public charging facilities accounted for 4.316 million units, with a growth of 37.8%, while private charging facilities reached 13.032 million units, growing by 59.6% [17]

Group 1: Automotive Industry Inventory and Sales - As of the end of August 2025, the national passenger car inventory in China is 3.16 million units, a decrease of 130,000 units from the previous month, with a 42-day sales support based on current inventory levels [1] - The inventory pressure has significantly decreased compared to August 2023, where the sales support was 52 days, indicating a more rational production control by manufacturers from May to August [1] Group 2: Strategic Partnerships - Changan Automobile and China Guoxin signed a strategic cooperation agreement to deepen collaboration in investment, business cultivation, and promote technological and industrial innovation [2] - The partnership aims to enhance the quality development of the Chinese automotive industry [2] Group 3: New Product Launches and Developments - Huawei and GAC Toyota's collaboration will upgrade to a full-stack solution, with plans to launch three new vehicles within two years, including models equipped with advanced driving and cockpit technologies [4] - The Enjoy S9T has been officially launched with prices starting at 309,800 yuan, featuring advanced technology and significant range capabilities [11] - BYD has unveiled the e-Bus platform 3.0, which includes a 1000V high-voltage architecture and aims to accelerate the electrification of public transport [11] Group 4: IPO and Valuation - Chery Automobile plans to open its IPO subscription on September 17, targeting a valuation of 140 billion HKD [6]

Core Viewpoint - The China Automotive Industry Association released the "Supplier Payment Norms Initiative" on September 15, urging automakers to comply with the "Regulations on Payment to Small and Medium-sized Enterprises" and to avoid exploiting their dominant positions to harm suppliers' interests, aiming to build a collaborative and win-win ecosystem in the automotive industry for high-quality development [1]. Group 1: Industry Response - A total of 17 automakers, including FAW, Dongfeng, Changan, SAIC, GAC, BAIC, Chery, Jiangqi, BYD, Geely, Great Wall, Seres, NIO, Li Auto, Xpeng, Leap Motor, and Xiaomi, have publicly committed to the payment initiative [1]. - The initiative provides clear guidance for building a collaborative ecosystem between complete vehicles and components, promoting high-quality development in the automotive industry [5][8]. Group 2: Specific Company Actions - FAW has unified the payment term for suppliers to within 60 days and optimized internal procurement and financial settlement processes to maintain a healthy market economy [3]. - Dongfeng will implement the initiative's requirements in key areas such as order confirmation, delivery, acceptance, payment, and settlement to protect supplier rights and enhance supply chain resilience [5]. - Changan has also committed to a 60-day payment term and has implemented an innovative payment process to ensure efficient cash flow for suppliers [7]. - SAIC has announced a unified 60-day payment term and will avoid using commercial acceptance bills that increase supplier financial pressure [8]. - GAC has adhered to a payment principle of not exceeding 60 days for 28 years and has established a comprehensive management system for the payment process [10]. - BAIC emphasizes equal, voluntary, fair, and honest principles in supplier relationships and opposes unreasonable payment practices [12]. - Chery has implemented measures to shorten the average payment period for suppliers and alleviate financial pressure on small and medium-sized enterprises [14]. - Jiangqi is enhancing payment efficiency and transparency while ensuring all suppliers receive fair and efficient payment experiences [15]. - BYD is focusing on key areas such as order confirmation and payment to build a collaborative ecosystem with suppliers [17]. - Geely has committed to a 60-day payment term and will not use practices that increase supplier financial pressure [18]. - Great Wall is committed to timely payments and optimizing payment processes to maintain a healthy supplier relationship [21]. - Seres calls for industry self-discipline to enhance supply chain resilience and competitiveness [23]. - NIO aims to establish long-term, mutually beneficial relationships with partners to ensure product quality and user experience [26]. - Li Auto and Xpeng both reaffirm their commitment to a 60-day payment term and efficient payment processes to support their partners [28][30]. - Leap Motor is dedicated to implementing the initiative and ensuring supply chain stability [32]. - Xiaomi emphasizes the importance of timely payments as a fundamental respect for partners and aims to enhance supply chain resilience [35].

Core Viewpoint - The "Automobile Industry Stabilization and Growth Work Plan (2025-2026)" aims to achieve approximately 32.3 million vehicle sales in 2025, with a focus on technological innovation and product quality for high-quality industry development [1][2][5] Group 1: Industry Goals - The plan targets around 32.3 million vehicle sales in 2025, a year-on-year increase of about 3%, with 15.5 million of those being new energy vehicles (NEVs), representing a 20% increase [2] - The automotive manufacturing industry's added value is expected to grow by approximately 6% year-on-year [2] - The automotive industry has shown stable growth for three consecutive years, contributing significantly to macroeconomic growth [2] Group 2: Policy Measures - The plan includes 15 specific measures across four dimensions: expanding domestic consumption, improving supply quality, optimizing the development environment, and deepening open cooperation [4] - Specific initiatives include promoting the full marketization of NEVs, enhancing automotive consumption, and advancing the industrial application of smart connected technologies [4] - The plan emphasizes the need for a healthy and orderly market environment, with measures to regulate competition and ensure compliance with payment terms [5] Group 3: Market Trends - In the first eight months of the year, China's automotive production and sales both exceeded 20 million units, with NEVs accounting for 45.5% of total new vehicle sales [2] - The competitive landscape is shifting, with domestic brands increasing their market share and a gradual cessation of price wars expected as new competitive products are launched [6] - The automotive sector is experiencing a positive response to recent policy measures, leading to a rise in automotive stocks [6]

Core Insights - As of September 10, 2023, the number of applications for the vehicle trade-in program has reached 8.3 million [1][3] - The Ministry of Commerce aims to boost consumption and expand domestic demand to promote high-quality development in the automotive industry [3] Group 1: Policy Implementation - The Ministry of Commerce will focus on the implementation of the vehicle trade-in policy, optimizing platform functions to enhance efficiency and ensure timely subsidies reach consumers [3] - The goal is to improve consumer satisfaction and perception of benefits from the trade-in program [3] Group 2: Reform Initiatives - The Ministry will advance automotive circulation consumption reform trials, targeting automotive consumption and addressing restrictive measures to enhance management levels [3] - Innovative approaches will be employed to cultivate new growth points in automotive consumption, including vehicle modifications, automotive events, RV camping, and classic cars [3] Group 3: Recycling and Compliance - Efforts will be made to streamline the automotive recycling chain, encouraging the introduction of advanced dismantling equipment for end-of-life vehicles [3] - The Ministry will guide local authorities to strengthen cross-departmental regulation and combat illegal dismantling activities [3] - Industry associations will be encouraged to promote compliance and self-regulation among enterprises to foster healthy industry development [3]

Core Viewpoint - The China Automotive Industry Association (CAIA) has issued a "Supplier Payment Norms Initiative" aimed at standardizing payment practices between automotive manufacturers and suppliers, which is expected to promote the healthy development of the automotive industry [1][2][3]. Group 1: Industry Response - Major automotive companies including SAIC, BYD, GAC, Changan, Dongfeng, Xiaomi, Li Auto, NIO, and Xpeng have collectively expressed their support for the CAIA's initiative [1][2][3]. - The initiative emphasizes key aspects such as order confirmation, delivery and acceptance, payment and settlement, and contract duration, with a recommendation that the acceptance of goods should not exceed three working days [1][2][3]. Group 2: Company Actions - SAIC Group has unified the payment period for suppliers to within 60 days and will not use commercial acceptance bills to alleviate supplier financial pressure [2]. - BYD is committed to implementing the initiative and enhancing collaboration with upstream and downstream partners through technological innovation and management optimization [3]. - GAC Group has pledged to support the initiative and promote healthy development across the industry chain [5]. - Changan has fully implemented the 60-day payment commitment and has developed an efficient payment process for suppliers [6]. - Dongfeng is actively working to ensure supplier rights and enhance industry chain resilience [9]. - Xiaomi has reiterated its commitment to timely payments and the importance of a healthy industry ecosystem [10]. - Li Auto and NIO have both confirmed their adherence to the 60-day payment period and the initiative's standards [11][13].

Core Viewpoint - A total of 17 automotive companies have committed to implementing the "Automobile Complete Vehicle Enterprises Supplier Payment Norms Initiative," aiming to foster a collaborative and win-win ecosystem between complete vehicles and components, thereby promoting high-quality development in the automotive industry [1][8]. Group 1: Company Responses - NIO emphasizes the importance of a healthy supply chain for product quality and user experience, committing to long-term, mutually beneficial relationships with partners and adherence to the payment norms [1]. - Great Wall Motors adheres to a philosophy of "true partnership and win-win cooperation," ensuring timely payments and optimizing payment processes to support small and medium-sized enterprises [2]. - Xiaomi Motors supports the initiative, highlighting the significance of timely payments for maintaining a stable industrial chain and committing to a payment period of within 60 days [3]. - Leap Motor commits to a "60-day payment" principle and aims to streamline approval processes to ensure efficient payment flows, contributing to the stability of the supply chain [4]. - XPeng Motors reaffirms its commitment to a 60-day payment period and emphasizes the importance of trust and support from partners for sustainable development [5]. - Geely Auto Group has already implemented a 60-day payment period and aims to enhance the efficiency of capital turnover within the supply chain [6]. - BAIC Group expresses its commitment to fair and transparent payment practices, focusing on optimizing payment processes to support the health of the supply chain [6][7]. - Jianghuai Automobile Group is enhancing payment efficiency and transparency, ensuring all suppliers, including SMEs, receive timely payments [7]. - China FAW Group emphasizes its role in maintaining a stable market economy and has unified the payment period to 60 days, optimizing internal processes [8]. Group 2: Industry Context - The initiative has received support from various national departments, including the Ministry of Industry and Information Technology, highlighting the government's focus on stabilizing the supply chain and promoting high-quality development in the automotive sector [4][8]. - The collective commitment from these automotive companies reflects a broader industry trend towards enhancing supplier relationships and ensuring financial stability within the supply chain [1][8].

Core Viewpoint - The China Automotive Industry Association has released a payment standard initiative for automotive manufacturers and suppliers, aiming to establish a collaborative and win-win development ecosystem in the automotive industry, particularly focusing on the timely payment of suppliers to promote high-quality development [1][3]. Group 1: Payment Standards - The initiative specifies that the payment period for manufacturers (Party A) should not exceed 60 calendar days from the date of delivery and acceptance of goods by suppliers (Party B) [2]. - It encourages manufacturers to make at least one centralized reconciliation per month and to pay suppliers based on the most recent contract price if there is no agreement on the supply price [2]. - The initiative advocates for cash or bank acceptance bills as payment methods, especially for small and medium-sized enterprises [2]. Group 2: Industry Response - The Ministry of Industry and Information Technology supports the initiative, emphasizing its importance in promoting industry standards and ensuring timely payments to suppliers [3]. - The initiative aims to enhance the stability of supplier relationships by recommending that contracts have a minimum validity period of one year [3]. - The commitment from 17 key automotive manufacturers to limit payment terms to 60 days reflects a sense of responsibility and accountability within the industry [4]. Group 3: Industry Challenges - The transition to electric vehicles is accelerating, but the supply chain for new energy vehicles remains immature, with suppliers facing instability and pressure due to delayed payments [4]. - Delayed payments can hinder technological innovation and the establishment of a robust supply chain, negatively impacting the overall industry [4]. - The initiative is seen as a step towards improving operational efficiency and fostering a modern management system within automotive enterprises [4].

Core Viewpoint - On September 15, 2023, 11 automotive manufacturers in China announced their commitment to implement the "Supplier Payment Norms Initiative" to foster a collaborative ecosystem between vehicle manufacturers and parts suppliers, aiming for high-quality development in the automotive industry [1][3][24]. Group 1: Initiative Response - Dongfeng Motor Group actively supports the initiative, focusing on key areas such as order confirmation, delivery, payment, and contract terms to protect supplier rights and enhance supply chain resilience [3]. - SAIC Motor Corporation has unified supplier payment terms to within 60 days and will not use commercial acceptance bills to alleviate supplier financial pressure, promoting efficient capital flow in the supply chain [5]. - Chery Group has committed to standardizing contract terms and implementing measures to shorten average payment periods for suppliers, thereby alleviating financial pressure on small and medium enterprises [7]. - Ideal Automotive reaffirms its commitment to a 60-day payment period and aims to build stable, mutually beneficial relationships with partners [12]. - Chang'an Automobile has implemented a payment scheme that ensures payments are made within 60 days, supporting the initiative and enhancing supply chain collaboration [13]. - GAC Group has maintained a payment principle of not exceeding 60 days for suppliers for 28 years, ensuring a transparent and efficient payment process [15]. - BYD Auto is focused on technological innovation and management optimization to build a collaborative ecosystem with suppliers, adhering to the initiative [17]. - Xiaomi Auto emphasizes the importance of timely payments to maintain a stable supply chain and commits to a 60-day payment period [19]. - NIO is dedicated to establishing long-term, mutually beneficial partnerships and aims to enhance the health of the supply chain [21]. - XPeng Motors continues to uphold its commitment to a 60-day payment period and aims to foster a stable and cooperative relationship with its partners [23].

Core Viewpoint - Multiple automotive companies are responding positively to the China Automotive Industry Association's initiative to standardize supplier payment terms, aiming to enhance the stability and health of the automotive supply chain [1] Group 1: Industry Response - The China Automotive Industry Association issued a proposal on September 15, 2023, to regulate payment terms between automotive manufacturers and suppliers, emphasizing key aspects such as order confirmation, delivery and acceptance, payment and settlement, and contract duration [1] - The initiative specifies that the acceptance of goods should ideally be completed within three working days, and encourages stable cooperation between suppliers and manufacturers, with contracts lasting no less than one year [1] Group 2: Company Commitments - SAIC Motor Group announced that by June 2025, it will unify supplier payment terms to within 60 days and will not use commercial acceptance bills that increase financial pressure on suppliers [1] - BYD Auto expressed its commitment to the initiative, focusing on key areas such as order confirmation and payment processes, and aims to foster a collaborative ecosystem for high-quality development in the Chinese automotive industry [1] - GAC Group has consistently adhered to the principle of not exceeding 60 days for supplier payment since its establishment in 1997, demonstrating its commitment to supply chain stability [1] - Changan Automobile is actively supporting the initiative and has implemented a payment process that ensures compliance with the 60-day payment commitment [1]