One year after 17 Chinese automakers pledged to settle supplier invoices within 60 days, financial disclosures show that none have fully met the target, according to a review of interim reports by the Chinese business outlet Huxiu.
The pledge followed the implementation of China's Regulations on Ensuring Payment for Small and Medium-sized Enterprises on June 1, 2025. Automakers including GAC, FAW, Dongfeng, Nio and Xpeng issued statements committing to payment cycles of no more than 60 days. However, an analysis of the 14 listed companies among the 17, based on their 2026 interim reports released in September, reveals that actual payment periods remain far longer.
Using the common methodology of accounts payable turnover days—calculated from accounts payable, notes payable, cost of goods sold and the reporting period—the longest cycles as of the end of June 2025 were at Seres (266 days), BAIC BluePark (245 days) and Nio (221 days). The shortest were at GAC Group (137 days), BYD (142 days) and Chery (151 days), with Geely and SAIC at 156 and 157 days respectively. Among other groups, Great Wall Motor stood at 182 days, Changan at 193 days, and JAC at 218 days. Among EV startups, Li Auto reached 208 days, Leapmotor 182 days, and Xpeng a relatively shorter 170 days.
Full-year figures show slight improvement
When calculated over the full year 2025 (using 360 days), the numbers improve: GAC 119 days, BYD 123 days, Geely 132 days, Chery 147 days, SAIC 155 days, Great Wall 157 days, Changan 198 days, JAC 211 days, and Seres 227 days. Among startups, Leapmotor was shortest at 169 days, followed by Xpeng at 174 days and Li Auto at 185 days, with Nio at 208 days. Notably, only Changan saw its full-year cycle lengthen compared with the first half. Three companies—Seres, JAC and Nio—still exceeded 200 days.
In the first half of 2026, the trend continued: GAC 129 days, BYD and Geely both 141 days, Great Wall 173 days, BAIC BluePark 178 days, SAIC 186 days, Chery 191 days, Changan 216 days, JAC 218 days, and Seres 280 days. Among startups, Li Auto shortened to 162 days, but Leapmotor extended to 214 days, Nio to 218 days, and Xpeng to 231 days. Eight of the 14 companies shortened their cycles year-on-year, with BAIC BluePark and Li Auto showing the biggest improvements, while six lengthened them, with Xpeng seeing the largest increase.
Industry insiders told Huxiu that the pledge was never realistic. Suppliers describe tactics such as starting the payment clock only after invoicing, which follows lengthy acceptance procedures, and using commercial acceptance bills that can take up to 80 days to cash. One small supplier said, "From the date of invoice to actual payment, it may have already passed 80 natural days."
Regulators step in but stop short of mandates
The Ministry of Industry and Information Technology and the State Administration for Market Regulation issued a joint notice on September 7, 2025, the first industry-specific payment management regulation, covering clear starting points for payment cycles, standardized acceptance, and priority for small suppliers. However, the 30-to-60-day payment window remains "advocated," not mandatory. The notice also calls for third-party evaluations and caps electronic payment instruments at six months.
At a State Council briefing on September 14, Vice Minister Ke Jixin acknowledged that average payment cycles have improved but still fall short of supplier expectations. Despite regulatory efforts, observers remain pessimistic: with years of price wars and declining industry profitability, automakers have little incentive to drastically shorten payment terms. As one industry source put it, "As long as it keeps getting shorter, that's a good thing."
