#Beauty#
60-day accounting period promises that the automobile supply chain will usher in time in funds. Yukiry and other car companies will be the first to fulfill their funds.
June 2025. China's automobile industry ushered in a quiet revolution.
Not a new car. Not a technological breakthrough.
It is a practice about "commitment".
17 mainstream car companies - from state-owned giants to new private forces - collectively signed the "Commitment Letter for Maintaining Fair Competition Market Order in the Automobile Industry". There is only one core: the payment period to the supplier shall not exceed 60 days.
Two months have passed. Did the promise be implemented?
Reality is thought-provoking.
🗓️ Policy background and car company commitment
Accounting period problems were once a chronic disease in the industry. In 2024, the average number of accounts payable turnover days for domestic auto companies exceeds 170 days. Some even reach more than 240 days.
Compare international giants? Only 50-70 days.
Huge gap.
June 1. The revised "Regulations on Guaranteeing the Payment of Funds for Small and Medium Enterprises" will be implemented. It is clearly stipulated that large enterprises should pay within 60 days from the date of delivery. And no non-cash methods such as commercial bills shall be accepted.
Car companies responded quickly.
State-owned camps such as FAW, Dongfeng, Changan, SAIC, and GAC. Private forces such as Geely, Great Wall, and BYD. New forces such as Ideal, NIO, Xiaopeng, and Zero Run. Continuously publicly made promises.
Great momentum.
But the promise is easy. It is difficult to practice.
💡 The light of the practitioner
Chery Automobile became the highlight. The research team of the Ministry of Industry and Information Technology fully affirmed its efficient performance of the contract. They will unify the supplier's pa
#Beauty#
60-day accounting period promises that the automobile supply chain will usher in time in funds. Yukiry and other car companies will be the first to fulfill their funds.
June 2025. China's automobile industry ushered in a quiet revolution.
Not a new car. Not a technological breakthrough.
It is a practice about "commitment".
17 mainstream car companies - from state-owned giants to new private forces - collectively signed the "Commitment Letter for Maintaining Fair Competition Market Order in the Automobile Industry". There is only one core: the payment period to the supplier shall not exceed 60 days.
Two months have passed. Did the promise be implemented?
Reality is thought-provoking.
🗓️ Policy background and car company commitment
Accounting period problems were once a chronic disease in the industry. In 2024, the average number of accounts payable turnover days for domestic auto companies exceeds 170 days. Some even reach more than 240 days.
Compare international giants? Only 50-70 days.
Huge gap.
June 1. The revised "Regulations on Guaranteeing the Payment of Funds for Small and Medium Enterprises" will be implemented. It is clearly stipulated that large enterprises should pay within 60 days from the date of delivery. And no non-cash methods such as commercial bills shall be accepted.
Car companies responded quickly.
State-owned camps such as FAW, Dongfeng, Changan, SAIC, and GAC. Private forces such as Geely, Great Wall, and BYD. New forces such as Ideal, NIO, Xiaopeng, and Zero Run. Continuously publicly made promises.
Great momentum.
But the promise is easy. It is difficult to practice.
💡 The light of the practitioner
Chery Automobile became the highlight. The research team of the Ministry of Industry and Information Technology fully affirmed its efficient performance of the contract. They will unify the supplier's payment period to within 60 days from June 10. And accelerate capital turnover in the industrial chain.
China FAW acted quickly. They formed a cross-departmental special working group. All small and medium-sized enterprise suppliers will be subject to 100% cash payments. Change the previous mixed model of "cash + bank acceptance bill". The qualification review of the first batch of more than 2,000 small and medium-sized enterprises has been completed.
GAC Group is an industry model. Since its establishment in 1997, it has adhered to the "payment within 60 days" as an iron law for 28 years. Cash transfer accounts for as high as 95%.
Cialis innovative model. They pioneered the "factory in factory". Gather partner production lines to the Gigafactory. Shorten the distance between parts from production to assembly. Reduced intermediate processes and shipping costs.
These companies prove one thing: promises are not empty talk.
⚖️ Realistic Challenge
The performance of some car companies is still in doubt.
Reports have pointed out. Some car companies are still in the process of progress. Not fully implemented. The same car company also has different ways of handling different suppliers.
Ideal Auto said to some suppliers that it only only after signing a new contract to fulfill its promise of "60-day accounting period".
Where are the old orders? Solve gradually.
Behind this is huge financial pressure. Suddenly, the average accounting period was shortened from more than 170 days to 60 days. This means that car companies need to quickly prepare a large amount of funds. Process adjustment also takes time - acceptance, online, payment, supply and marketing contracts and other links need to be optimized.
There is also the problem of "invisible accounting period". Does the contract clearly define the payment time node and conditions? Is the process transparent? These will affect the actual payment time.
🌊 Industry impact and future path
Shortening of the accounting period is of great significance to the supply chain.
Supplier capital turnover is accelerating. Financing costs and financial expenses are reduced. The risk of bad debts is reduced. They can have more money to invest in research and development and production. Improve innovation capabilities and product quality.
The stability and continuity of the entire supply chain have been improved. The links from raw material procurement to vehicle assembly are closer.
Industry competition is also expected to shift from a "price war" to a "value war". Car companies can no longer rely on occupying supplier funds to reduce their own operating costs. More attention must be paid to internal management efficiency and product quality.
But the road ahead is still full of challenges.
Car companies need to prepare funds and adjust the process. Some car companies may be shortened by the shortening of their accounting period. Suppliers are required to further reduce procurement prices. This may in turn exacerbate the price war.
The supervision mechanism is crucial. Xu Haidong, the special deputy secretary-general of the China Association of Automobile Manufacturers, emphasized. Contract constraints are the key to avoiding invisible accounting periods. Industry associations can issue accounting period execution reports regularly. Use public opinion supervision to promote self-discipline of auto companies.
The Ministry of Industry and Information Technology has opened a "Online Problem (Suggestions) Reflection Window for Key Automobile Companies to Perform Account Period Commitments". Strengthen supervision.
🔚 Conclusion
60-day accounting period commitment. It's not just a document.
It is also a solemn commitment to the healthy development of the automobile industry chain.
The practice of Chery, FAW, GAC and other companies shows that it is difficult to fulfill their promises. But it works. And beneficial.
This is not only about business credit. It is more about the future of the entire industry.
Commitments need to be kept. The supply chain needs to be coordinated.
That's all. Only in this way can China's automobile industry truly achieve a transformation from big to strong.
The road is far. When you go, you will be here.
Even though things are difficult. Do it will be successful.
The healthy development of China's automobile industry. The joint efforts of each participant are required.
Commitment is not the end. But a new starting point.
