Core Viewpoint - The article emphasizes the importance of a healthy payment cycle (60 days) in the automotive supply chain, highlighting its role in fostering trust and collaboration between manufacturers and suppliers, ultimately leading to sustainable development and innovation in the industry [4][5][13]. Payment Cycle Importance - A healthy payment cycle is crucial for the sustainable development of the entire value chain, as it impacts investment in new technologies and production capacity [4][23]. - The 60-day payment policy has been adopted by several major automotive companies, reflecting a shift towards a more supportive relationship between manufacturers and suppliers [5][7]. - Suppliers view the 60-day payment cycle as essential for maintaining cash flow, which is necessary for innovation and operational stability [7][19]. Shift in Manufacturer-Supplier Relationships - The relationship between manufacturers and suppliers is evolving from a traditional supply-demand dynamic to a more collaborative, long-term partnership model [7][30]. - Manufacturers recognize that the success of their operations is intertwined with the financial health of their suppliers, leading to a more symbiotic relationship [7][21]. - The emergence of the Tier 0.5 model signifies a qualitative leap in collaboration, where suppliers are involved early in product development, enhancing innovation and responsiveness to market changes [9][30]. Tier 0.5 Model - The Tier 0.5 model emphasizes co-creation and innovation, allowing suppliers to participate in defining products and responding to consumer feedback more effectively [9][30]. - This model fosters deep mutual trust and collaboration, enabling both manufacturers and suppliers to innovate and adapt to rapidly changing market conditions [9][33]. - Suppliers are increasingly seen as partners in the innovation process, contributing ideas and capabilities from the early stages of product development [9][35]. Global Market Expansion - The collaborative efforts between manufacturers and suppliers are essential for successfully entering global markets, particularly in the context of increasing competition [10][56]. - Companies are focusing on building strong supply chains that can support international expansion, leveraging the capabilities of both domestic and international partners [10][59]. - The automotive industry is witnessing a shift towards a more integrated approach to global market strategies, where collaboration across the supply chain is key to success [10][60].

Core Insights - The Chinese automotive industry is undergoing a structural transformation in 2025, shifting from price competition to technology-driven growth, and from domestic focus to global expansion, marking a new development stage [1] Group 1: Price War Aftermath - The price war in the automotive industry has entered its third year, with profit margins dropping to 4.5% in the first three quarters of 2025, below the 6% average of downstream industrial enterprises [3] - There are signs of easing in the price war, indicating a shift from vicious competition to rational development, as companies recognize that quality, service, and technological innovation are essential for long-term success [3] Group 2: 60-Day Payment Terms - Major automotive companies have adopted a 60-day payment term, reflecting a significant change in the industry ecosystem and addressing long-standing payment issues that strained supply chains [6] - This shift enhances the credit system within the supply chain, allowing suppliers to invest more in innovation and quality improvement, thus fostering a healthier industry environment [6] Group 3: 5-Second Acceleration Standard - A new regulation proposes that new vehicles must achieve a 0-100 km/h acceleration time of no more than 5 seconds, marking a fundamental shift in competitive logic within the automotive industry [9] - This standard encourages companies to focus on safety, user experience, and practical technology rather than extreme performance metrics [9] Group 4: 50% Penetration Rate of New Energy Vehicles - By November 2025, new energy vehicles accounted for 53.6% of domestic passenger car sales, indicating a shift from policy-driven to market-driven growth in the sector [11] - This milestone signifies that new energy vehicles have become mainstream, reshaping the industry landscape and prompting traditional automakers to accelerate their electrification strategies [11] Group 5: Subsidy Phase-Out - The phase-out of subsidies for new energy vehicles is set to begin in 2026, transitioning the industry from reliance on government support to market-driven growth [14] - This change is expected to enhance market competition and compel companies to improve product quality and cost control [14] Group 6: New Normal in Exports - In 2025, China's automotive exports are projected to exceed 6.8 million units, maintaining the top position globally for the third consecutive year, with a significant increase in new energy vehicle exports [16] - The export model is evolving from product trade to a more integrated approach involving industry chain and technology exports [16] Group 7: Smart Driving Popularization - 2025 marks the year of smart driving technology's widespread adoption, with significant advancements in urban navigation assistance systems [19] - Regulatory measures are being implemented to ensure safety and compliance, balancing innovation with social responsibility [19] Group 8: Joint Venture Counterattack - Traditional joint venture brands are launching a "localization 2.0" strategy to regain market share in the new energy era, focusing on deep localization and embracing electrification [21] - This strategy enhances competition and provides consumers with more quality choices while integrating the supply chain into the local ecosystem [21] Group 9: Battery Safety Concerns - Battery safety issues have escalated to a regulatory priority, with new standards mandating thermal monitoring and warning systems for battery packs [24] - These regulations aim to enhance safety and accountability in the industry, pushing companies to prioritize safety investments [24] Group 10: Retreat of Hidden Door Handles - The decline of hidden door handles reflects a broader industry reconsideration of "over-design" in automotive engineering, emphasizing safety and practicality over aesthetics [27] - New regulations require mechanical release functions for door handles, signaling a shift towards user-centric design principles [27]

Core Insights - The automotive industry is currently facing two significant developments: the introduction of a payment guideline by the China Automotive Industry Association and a joint initiative by six government departments to address online misconduct in the sector [1][2]. Group 1: Payment Guidelines - The China Automotive Industry Association has launched an initiative to ensure that payment terms do not exceed 60 days, responding to a government regulation aimed at protecting small and medium-sized enterprises [1][2]. - A survey revealed discrepancies in the execution of payment processes between automakers and suppliers, prompting the release of this initiative to clarify and standardize these processes [2][3]. - The initiative aims to enhance management capabilities and streamline payment processes, thereby facilitating the commitment to the 60-day payment term [3][4]. Group 2: Industry Conduct - The joint action by the Ministry of Industry and Information Technology and other departments targets illegal profit-making, exaggerated claims, and malicious attacks within the automotive industry [1]. - The behavior of executives publicly disparaging competitors can harm the brand image and long-term market position of their companies, despite any short-term gains [5]. - The industry is encouraged to focus on product quality, innovation, and customer satisfaction rather than engaging in negative competitive tactics [5].

Core Viewpoint - The automotive industry is witnessing two significant developments: the introduction of a payment guideline by the China Automotive Industry Association and a joint initiative by six government departments to address online misconduct in the sector. These efforts aim to create a healthier internal ecosystem and a clearer external environment for the industry. Group 1: Payment Guidelines - The China Automotive Industry Association has launched an initiative to ensure that payment terms do not exceed 60 days, responding to a government regulation aimed at protecting small and medium-sized enterprises [1][2] - The initiative was prompted by findings from surveys and discussions with key automotive companies and their supply chains, highlighting discrepancies in processes that could delay the implementation of the 60-day payment commitment [2][3] - The initiative aims to enhance management capabilities and streamline processes for both automakers and parts suppliers, ensuring the 60-day payment term is effectively realized [3] Group 2: Coordination and Timeframes - The 60-day payment term is designed to foster collaboration between automakers and suppliers, establishing a win-win situation within the industry [4] - Confirmation of delivery should occur within three working days, and the 60-day payment period starts from the date of delivery confirmation, including holidays, with provisions for delays due to holidays [4] - The shift from payment terms exceeding 100 days to 60 days places significant pressure on larger companies while providing crucial cash flow benefits for smaller enterprises [4] Group 3: Industry Conduct and Competition - The behavior of executives in public forums can negatively impact a company's brand image, even if it appears to yield short-term benefits [5] - Market competition should rely on product quality, innovation, and customer satisfaction rather than negative tactics against competitors, as such actions can backfire and harm the company in the long run [6]

Core Insights - The automotive industry is witnessing two significant developments: the China Automotive Industry Association has launched a payment guideline initiative focusing on a payment period not exceeding 60 days, while the Ministry of Industry and Information Technology and five other departments have initiated a special campaign to address online misconduct in the automotive sector [1] Group 1: Payment Guidelines Initiative - The initiative aims to address challenges in implementing the 60-day payment period established by the State Council's regulations for large enterprises to pay small and medium-sized enterprises promptly [3] - The initiative was prompted by feedback from key enterprises and supply chain companies, revealing discrepancies in processes such as order confirmation, payment, and contract signing, which hinder the execution of the 60-day payment commitment [4][7] - The 60-day payment period is designed to enhance collaboration between automotive manufacturers and suppliers, ensuring a win-win situation across the industry [8][9] Group 2: Online Misconduct Campaign - The campaign targets illegal profit-making, exaggerated and false advertising, and malicious defamation within the automotive industry, aiming to create a clearer external environment for competition [1] - The actions taken by the government reflect a new regulatory approach and a focus on maintaining a healthy competitive order in the automotive sector [1] Group 3: Impact of Executive Behavior - Negative public behavior by executives, such as disparaging competitors, can harm the long-term brand image of their companies despite any short-term gains [11] - Market competition should rely on product quality, innovation, and user reputation rather than negative tactics, as the competitive landscape is constantly evolving [12]

Core Viewpoint - On September 15, 17 automotive companies, including BYD and Xiaomi Auto, publicly committed to a supplier payment term not exceeding 60 days, with detailed guidelines on the payment process, which has garnered significant attention [1][2]. Group 1: Payment Terms and Conditions - The new initiative specifies that suppliers should expect acceptance of goods to be completed within three working days after delivery [1]. - The 60-day payment term starts from the date the goods are delivered and accepted, with a maximum duration of 60 calendar days [1]. - For non-small and medium-sized enterprises with continuous supply (more than twice a month), a consolidated reconciliation method can be used, with the payment term starting from the reconciliation date [1]. Group 2: Payment Methods and Supplier Relationships - To avoid delays in payment due to price disagreements, the initiative suggests an initial payment based on the last supply contract price (at least 80%) or a predetermined development price (at least 50%) [2]. - The initiative encourages cash or bank acceptance bills as payment methods, particularly for small and medium-sized enterprises [2]. - The China Automotive Industry Association advocates for long-term stable relationships between manufacturers and suppliers, with contracts having a minimum validity of one year [2]. Group 3: Market Reaction - Following the announcement of the initiative, the automotive parts sector saw a positive market response, with several stocks, including Langbo Technology and Tianlong Shares, hitting the daily limit, while others like CATL and Meichen Technology rose nearly 10% [2].

Core Viewpoint - The China Automobile Manufacturers Association (CAAM) has launched an initiative to standardize payment terms between automobile manufacturers and suppliers, establishing a maximum payment period of 60 days from the date of delivery and acceptance of goods [1][3]. Group 1: Payment Terms and Procedures - The initiative specifies that the payment period starts from the date the supplier delivers goods and they are accepted by the manufacturer, with a maximum of 60 calendar days [1][2]. - Manufacturers are encouraged to complete the acceptance of goods within three working days and issue an acceptance certificate upon successful verification [2]. - For small and medium-sized suppliers, the initiative advocates for payments to be made entirely in cash or through bank acceptance bills [2]. Group 2: Industry Support and Compliance - The initiative aims to support the implementation of the "Regulations on Payment for Small and Medium Enterprises" and to promote high-quality practices among key manufacturers regarding payment commitments [3][4]. - The Ministry of Industry and Information Technology (MIIT) supports the initiative, emphasizing its importance in guiding industry enterprises to fulfill payment commitments and promoting standardized development in the automotive sector [4][5]. Group 3: Challenges and Recommendations - A previous survey indicated that there are four main issues with the current implementation of the 60-day payment term, including ambiguity regarding the starting point for the payment period [3]. - Suppliers have expressed concerns about the continued use of commercial acceptance bills, which complicates payment processes [3]. - The MIIT highlighted that delayed payments increase operational pressure on suppliers, negatively impacting their ability to invest in technological innovation and the overall supply chain resilience [5].

Core Viewpoint - The automotive industry is experiencing a shift towards a standardized payment term of 60 days for suppliers, initiated by 17 major car manufacturers, although challenges remain in fully implementing this commitment [1][6][21]. Group 1: Payment Terms and Supplier Experience - Suppliers report some improvement in payment cycles, but the full realization of the "60-day payment term" is still problematic due to uncertainties in project completion and acceptance processes [2][9][10]. - A survey indicates that 50% of suppliers are concerned about the sustainability of the 60-day payment term, highlighting a gap between policy and execution [11][15]. - The payment speed has shown positive changes, with 83.33% of suppliers noting slight improvements, and 33.33% reporting significant reductions in financial pressure [13]. Group 2: Regulatory and Industry Response - The implementation of the "60-day payment term" aligns with the "Regulations on Ensuring Payment to Small and Medium Enterprises," which took effect on June 1 [6][21]. - The Ministry of Industry and Information Technology (MIIT) is actively promoting compliance with the 60-day payment commitment among major automotive companies, with some firms already achieving significant reductions in payment cycles [22][23]. - Companies like Chery and China FAW have adopted measures to streamline payment processes, with Chery reducing average payment terms to 47 days through various strategies [23]. Group 3: Challenges and Concerns - Despite improvements, suppliers express concerns about potential delays in payment due to ambiguous contract terms and varying interpretations of the payment start date [18][25]. - The use of commercial acceptance bills has not been entirely eliminated, with 66.67% of suppliers indicating that while usage has decreased, it still exists [14]. - Industry experts warn that the shift to shorter payment cycles may pressure manufacturers' cash flow, necessitating better financial management to avoid passing costs back to suppliers [24][27].

Core Viewpoint - The implementation of the revised "Regulations on Payment of Small and Medium-sized Enterprises" has revealed that only a few of the 17 major automotive companies have fulfilled their commitment to pay suppliers within 60 days, highlighting challenges in cash flow management and organizational capabilities in the industry [1][2][3]. Group 1: Company Commitments - 17 automotive companies, including major players like China FAW, GAC Group, and BYD, initially pledged to adhere to a 60-day payment term for suppliers [1]. - As of now, only three companies—China FAW, GAC, and Seres—have successfully implemented the 60-day payment term [2]. - Companies like Xpeng have signed supplementary agreements with some suppliers to formalize the 60-day payment commitment, although some suppliers are still in the process of signing [2][3]. Group 2: Industry Challenges - The average accounts payable turnover days for domestic listed automotive companies reached 182 days in 2024, indicating a long-standing issue of delayed payments in the industry [3]. - Reducing the payment cycle from over 100 days to 60 days would require automotive companies to release over 1 trillion yuan in cash flow, posing significant pressure on an industry already facing declining profit margins [3]. - The transition to a 60-day payment term involves complex organizational management challenges, including procurement, contract review, financial payments, and tax documentation [3]. Group 3: Regulatory Environment - The new regulations prohibit companies from forcing small and medium-sized enterprises to accept non-cash payment methods, which could extend payment periods [3]. - China FAW has committed to 100% cash payments to recognized small and medium-sized suppliers starting from June [3]. - Regulatory bodies are encouraged to enhance oversight to ensure compliance with the 60-day payment commitment and to address issues of hidden payment delays [4].

Group 1 - The automotive industry has implemented a "60-day payment term" for suppliers, marking a significant change in payment practices [1][3] - GAC has established a comprehensive management system covering the entire process from order issuance to payment, with 95% of payments made in cash [2] - FAW has shifted to 100% cash payments for recognized small and medium-sized suppliers, moving away from a mixed payment model [2] Group 2 - The "60-day payment term" is boosting confidence in the supply chain, encouraging investments from both upstream and downstream players [3] - Major automakers, including Toyota, Volkswagen, and BYD, have adopted the 60-day payment term, leading to increased production and sales [3] - In July, automotive production and sales reached 2.591 million and 2.593 million units, respectively, reflecting year-on-year growth of 13.3% and 14.7% [3]