Auto Giants Unite to End Industry Chaos – 8 Brands Slash Supplier Payment Terms!

China’s top automakers are pushing back against destructive price wars and unhealthy competition. Within just 10 hours, eight major car companies—including BYD, Geely, Changan, FAW, Dongfeng, GAC, Seres, and Chery—announced a bold reform: supplier payment terms will now be capped at 60 days.

This sweeping move is fueled by China’s new regulation, effective June 2025, which aims to protect small and medium suppliers from delayed payments. The Ministry of Industry and other top agencies are also stepping in to curb the intense “involution” plaguing the EV and auto sectors.

This isn’t just a financial policy shift—it’s a new beginning for fairer, healthier collaboration across the auto industry. By ensuring faster payments, automakers are strengthening the supply chain and building a more sustainable future.

A new chapter for China’s car industry has begun. Are more companies ready to join the wave?