CAAM: Payment Terms of Key Automakers Reduced to 54 Days

[Supply Chain] A CAAM survey shows that the average payment term among 17 key automakers has been reduced to 54 days.

Key Development: The average payment term for 17 key automakers has been shortened to 54 days, a reduction of 10 days compared to last year.

The vast majority of automakers have already capped supplier payment cycles within 60 days, with 4 companies maintaining average payment terms below 50 days. All companies calculate payment terms starting from goods delivery and acceptance, ensuring small and medium-sized enterprises (SMEs) receive full payment within 60 days across the entire process.

Key Data: 14 companies offer additional benefits to SMEs, and 2 companies achieve 100% cash payments.

15 companies use only cash or bank-accepted bills, while 2 companies have committed to gradually phasing out electronic accounts payable instruments. 5 companies maintain cash payment ratios exceeding 50%, with 2 surpassing 70%. Additionally, 5 companies allow financially strained SMEs to apply for early payment.

Strategic Foundation: Automakers have established dedicated mechanisms to ensure commitments are fulfilled, promoting collaborative success across the industrial chain.

Multiple automakers have formed specialized task forces, issued policy documents, and implemented automated payment systems through optimized financial processes and digital platforms to strengthen industry self-regulation and supply chain stability.