Chinese carmakers vow to make timely supplier payments as backlash to price war grows
Views : 61
Update time : 2025-06-12 16:36:10
SHANGHAI, June 11 (Reuters) - Major Chinese car manufacturers have pledged to make payments to suppliers within 60 days, responding to a recent outcry from steelmakers over long payment times as well as regulatory pressure as the backlash to a punishing price war grows.
Chinese authorities issued new rules in March that require big companies to settle most payments with suppliers within 60 days, which became effective June 1. However, suppliers had been worried that there were loopholes for the rules to be circumvented.
Automakers issuing pledges on Wednesday included BYD , Chery (CHERY.UL) and state-owned automakers BAIC (1958.HK), opens new tab and SAIC (600104.SS), opens new tab as well as smaller players like Xpeng (9868.HK), opens new tab and Xiaomi (1810.HK), opens new tab.
Chery in its statement, for example, said it would strive to speed up the turnover of capital in the supply chain. But like other automakers, it did not mention how much of an improvement this would represent.
The pledges come after China's industry ministry summoned automakers to a meeting last week where they were told to put an end to the price war and excessive competition - factors which have put tremendous pressure on the industry's supply chain.
