Core Viewpoint - The commitment of 17 automotive companies to shorten payment terms aims to alleviate pressure on the supply chain and promote a healthier industry ecosystem [2][4]. Group 1: Payment Term Commitments - Several automotive companies, including FAW, GAC, and Seres, have optimized processes to fulfill their payment term commitments, with Chery reducing the average payment period to 47 days [1]. - Despite some companies adjusting payment terms, many suppliers report that actual changes in payment periods remain minimal [1][2]. - The average payment cycle for suppliers is around 9 months, with some companies publicly committing to 60-day payment terms but facing operational challenges [2]. Group 2: Challenges in Payment Processes - The lack of unified acceptance standards and hidden clauses in contracts complicates the payment process, leading to delays [3]. - Some companies utilize commercial bills to extend the payment cycle, and the reliance on supply chain financial instruments can lead to longer cash conversion periods for suppliers [3]. Group 3: Supplier Power Dynamics - Many parts suppliers lack bargaining power against major automotive companies, often prioritizing customer retention over timely payments [4]. - The pressure from leading automotive companies to lower prices further complicates the financial dynamics for suppliers [4]. Group 4: Regulatory and Industry Recommendations - Industry experts suggest enhancing supervision of payment cycles and establishing a breach compensation mechanism to ensure compliance with payment commitments [7]. - The government is encouraged to incorporate payment term assessments into subsidy policies for electric vehicles, rewarding compliant companies and penalizing those that do not meet standards [7][8]. - The Ministry of Industry and Information Technology is taking steps to improve transparency in payment practices and reduce disputes through standardized payment regulations [8]. Group 5: Industry Outlook - The automotive industry is facing challenges due to overcapacity, with current utilization rates being relatively low [8]. - Experts believe that addressing overcapacity and improving payment practices will lead to a more efficient and resilient automotive sector [9].