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Chinese Carmakers Slash Supplier Payment Cycles to 54 Days

2/13/2026

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Summary

Story summary

The China Association of Automobile Manufacturers (CAAM) reports major Chinese carmakers have shortened supplier payment cycles.
Seventeen carmakers now average 54 days for payments, down from about 300 days over the past three years.
Analysts say the shift eases suppliers' cash-flow issues caused by extended payment terms.
Government intervention to regulate competition in the auto sector has prompted compliance, with penalties for non-compliance.

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Story summary

The China Association of Automobile Manufacturers (CAAM) reports major Chinese carmakers have shortened supplier payment cycles.
Seventeen carmakers now average 54 days for payments, down from about 300 days over the past three years.
Analysts say the shift eases suppliers' cash-flow issues caused by extended payment terms.
Government intervention to regulate competition in the auto sector has prompted compliance, with penalties for non-compliance.