BYD of China Announces Plans to 'Proactively Address' Supplier Payment Initiative

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Sep 15 2025

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Source: Reuters

BYD's Commitment: BYD has pledged to adhere to an industry initiative aimed at ensuring timely payments to suppliers, aligning with a government call to avoid price wars in the automotive sector.
Industry-Wide Compliance: Major Chinese automakers, including SAIC Motor, Changan, Chery, and Xiaomi, are also committing to the initiative, which emphasizes a 60-day payment period following the acceptance of goods, with specific guidelines for payment processes.
CAAM's Proposal: The China Association of Automobile Manufacturers (CAAM) has proposed measures to address concerns about compliance with supplier payment commitments, highlighting the need for a standardized approach across the industry.
Regulatory Actions: China's industry ministry has announced plans for tighter regulation of the auto industry, responding to challenges such as insufficient demand and disorganized competition, while also setting lower vehicle sales targets for the year.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.