China Association of Automobile Manufacturers: The vast majority of key automobile companies have now compressed their payment terms to within 60 days.

On February 12th, the China Association of Automobile Manufacturers released a research report on the implementation of payment terms by key vehicle suppliers. The research results show that the vast majority of key vehicle manufacturers have shortened their payment terms to within 60 days, with an average of about 54 days. Among them, 4 companies have an average payment term of less than 50 days. In terms of payment methods, 15 companies use cash or bank acceptance drafts, while a few companies use commercial acceptance drafts. Two companies use electronic payment vouchers for accounts payable and have promised to gradually phase them out. Five companies have a cash payment ratio of over 50%, and two companies have a ratio of over 70%. In terms of preferential treatment for small and medium-sized enterprises, 17 key companies start the payment term countdown from the acceptance of goods delivery by small and medium-sized enterprises, ensuring that the "full process" from acceptance to payment does not exceed 60 days. Fourteen companies have implemented additional preferential policies for small and medium-sized enterprises, two companies require 100% cash payment for small and medium-sized enterprise payments, and five companies allow cash-strapped small and medium-sized enterprises to apply for early payment of goods.