Dozens of automakers have spoken out collectively! The auto parts sector is experiencing significant positive developments! Individual stocks have triggered a "limit-up rally" [SMM Hot Topic]

SMM News on June 11: In the morning of June 11, the auto parts sector surged rapidly, with the index rising nearly 3% at one point during the trading session, and individual stocks experiencing a wave of strong limit-up rallies. By the end of the day's trading, the auto parts index had risen by 2.32%. Among individual stocks, 10 stocks including Tongxin Transmission, Meichen Technology, Dishengli, and Jinqilin hit their daily limits, while multiple stocks such as Zhejiang Huayuan, Xiangyang Bearing, and Lizhong Group followed suit with gains.

The reasons behind all these developments are closely tied to the collective "voices" of dozens of automakers yesterday and today. It is reported that on the evening of June 10, four automakers, namely FAW Group, Dongfeng Motor, GAC Group, and Seres, issued separate statements committing to "payment terms not exceeding 60 days." On June 11, a host of automakers including BYD, Great Wall Motor, Xiaomi Auto, XPeng Motors, Chery Group, Leap Motor, BAIC Group, Li Auto, and NIO also followed suit, issuing announcements mentioning their decision to "unify supplier payment terms to within 60 days."

In the announcements of these enterprises, many mentioned their active response to the "Regulation on Ensuring Payments to Small and Medium-sized Enterprises" issued by the State Council. Public information shows that the "Regulation on Ensuring Payments to Small and Medium-sized Enterprises" was revised and adopted at the 43rd executive meeting of the State Council on October 18, 2024, and came into effect on June 1, 2025. It clearly stipulates that large enterprises shall not exceed 60 days for the payment of project funds. Meanwhile, they shall not force small and medium-sized enterprises to accept non-cash payment methods such as commercial bills of exchange to extend payment terms in disguise.

Undoubtedly, the automakers' collective response to the decision to "unify supplier payment terms to within 60 days" is undoubtedly a significant positive for auto parts enterprises. On the one hand, the shortening of automakers' payment terms allows parts suppliers to receive payments as quickly as possible, accelerating the speed of capital inflows. Suppliers can use the recycled funds to purchase raw materials, avoiding shortages in raw material supply due to capital constraints that could affect production schedules. This can expedite the capital turnover of auto parts enterprises and reduce the risk of production halts caused by financial constraints. Additionally, it can enhance the operational stability of auto parts enterprises and promote the coordinated development of the entire automotive supply chain.

CITIC Securities commented on this, stating that automakers' active response to policies indicates that the automotive industry has entered a stage of high-quality development. Dai Chang from Guohai Securities pointed out that under the catalysis of the trade-in policy in 2024, passenger vehicle sales exceeded expectations. With the continuation of the trade-in policy in 2025, it will support the upward trend in automotive consumption. The industry is expected to remain highly prosperous throughout the year, and we continue to be optimistic about opportunities in the auto sector, particularly high-quality parts suppliers with upward operating cycles.

Additionally, according to information from Cailian Press, data released by the China Automobile Manufacturers Association (CAAM) showed that in May 2025, China's automobile production and sales reached 2.649 million units and 2.686 million units, respectively, up 1.1% MoM and 3.7% MoM, and up 11.6% YoY and 11.2% YoY. From January to May, automobile production and sales totaled 12.826 million units and 12.748 million units, respectively, up 12.7% YoY and 10.9% YoY.

In terms of new energy vehicles (NEVs), production and sales in May reached 1.27 million units and 1.307 million units, respectively, up 35% YoY and 36.9% YoY. NEV sales accounted for 48.7% of total new vehicle sales. From January to May, NEV production and sales totaled 5.699 million units and 5.608 million units, respectively, up 45.2% YoY and 44% YoY. In terms of exports, China exported 551,000 vehicles in May, up 6.6% MoM and 14.5% YoY. From January to May, total vehicle exports reached 2.49 million units, up 7.9% YoY.

SMM summarized the key points of the announcements from several automakers as follows:

[FAW Group: Fulfilling Responsibilities, Building a Healthy Supply Chain Ecosystem]

FAW Group announced that as a large state-owned automotive enterprise group, it has always regarded suppliers as its closest partners, adhering to the principles of shared destiny and mutual benefit to achieve high-quality development together.

Recently, national ministries and commissions, including the Ministry of Industry and Information Technology (MIIT) and the State-owned Assets Supervision and Administration Commission (SASAC), have issued a series of deployment requirements to ensure the stability of the industrial and supply chains and promote high-quality development of the automotive industry. FAW Group has resolutely implemented these requirements, continuously optimizing its internal procurement and financial settlement processes to maintain a healthy and stable market economic order. Firstly, it has improved mechanisms and strengthened execution by clarifying payment terms and methods, setting a "60-day payment" requirement for affiliated units, and enhancing financial supervision and process management. Secondly, it has optimized processes to improve efficiency by strengthening internal coordination among departments such as procurement and finance, further streamlining approval processes, and ensuring smooth payment procedures. Thirdly, it has leveraged technology for precise control by fully utilizing digital cloud workbenches to achieve real-time monitoring of nodes throughout the entire process, including contract execution, invoice matching, and payment applications, ensuring that all payables are paid on schedule.

[Dongfeng Motor: Fulfilling Central State-Owned Enterprise Responsibilities, Unifying Payment Terms to Within 60 Days!]

On June 10, to thoroughly implement the spirit of national policies and support the healthy development of small and medium-sized enterprises, Dongfeng Motor Corporation (hereinafter referred to as Dongfeng Motor) officially announced that it would unify payment terms to within 60 days. This move is an important initiative by Dongfeng Motor to actively respond to the Regulations of the State Council on Ensuring Payments to Small and Medium-sized Enterprises, aiming to drive efficient capital flow between upstream and downstream enterprises through concrete actions and facilitate the coordinated development of the industry chain.

[GAC Group: A Solemn Commitment on Supplier Payment Terms]

GAC Group has consistently been committed to providing customers with safe and high-grade products and services. The healthy development of the supply chain system is the foundation for ensuring product safety and quality. To this end, GAC Group will, as always, adhere to a supplier payment term of no more than 60 days to ensure efficient capital turnover in the supply chain. It will work hand in hand with upstream and downstream partners to jointly promote the high-quality development of the industry.

[Seres: An Initiative on Jointly Promoting High-Quality Industry Development]

Seres actively responds to the Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development issued by the China Association of Automobile Manufacturers. The achievements made by China's NEV industry have not come easily. We call for a more orderly marketization, with enterprises strengthening self-discipline to jointly promote the high-quality development of the industry. We are willing to continue working hand in hand with industry peers to jointly maintain a fair and orderly market environment and build a new era of intelligent electric mobility! Seres is actively promoting product integration and intelligent manufacturing clustering, effectively facilitating the coordinated development of upstream and downstream enterprises in the industry chain and enhancing the competitiveness of the entire industrial cluster.

Seres has been making payments in accordance with contractual agreements with suppliers, with a normal payment term of 60 days, achieving a win-win situation for both OEMs and suppliers.

[BYD: Fulfilling Social Responsibilities and Promoting High-Quality Industry Development]

To implement a series of deployment requirements made by the state and relevant ministries on ensuring the stability of the industry chain and supply chain and promoting the high-quality development of the automotive industry, and to support the healthy development of small and medium-sized enterprises, BYD Auto announced that it will unify supplier payment terms to within 60 days.

BYD stated that it will drive the high-quality development of China's automotive industry through concrete actions. In the future, BYD Auto will continue to promote the steady and long-term development of China's automotive industry through technological innovation and management optimization, working hand in hand with upstream and downstream partners.

[Great Wall Motor: A Commitment to Unifying Payment Terms to Within 60 Days]

To thoroughly implement the Regulations of the State Council on Ensuring Payments to Small and Medium-sized Enterprises, Great Wall Motor Co., Ltd. announced that it will unify supplier payment terms to within 60 days to ensure the stability of the automotive industry chain and supply chain, promote fair market competition, stimulate innovation vitality, and improve development efficiency.

[Xiaomi Auto: Unifying Supplier Payment Terms to Within 60 Days]

Xiaomi Auto announced on its official Weibo account that it will resolutely implement the deployment requirements made by the state and relevant competent departments on promoting the high-quality development of the automotive industry and ensuring supply chain stability, unifying supplier payment terms to within 60 days.

[Chery Group: Unifying Supplier Payment Terms to Within 60 Days]

Chery Group stated that recently, national ministries and commissions, including the Ministry of Industry and Information Technology (MIIT) and the State-owned Assets Supervision and Administration Commission (SASAC), have made a series of deployment requirements to ensure the stability of the industry chain and supply chain and promote the high-quality development of the automotive industry. Chery Group is resolutely implementing these requirements and has decided to unify supplier payment terms to within 60 days starting from June 10, in order to accelerate the capital turnover efficiency of the industry chain and ensure the stability of the industry chain and supply chain.

[Leap Motor: Will Continue to Adhere to the "60-Day Payment" Principle to Ensure Efficient and Smooth Payment Processes]

Leap Motor posted on Weibo that it will continue to adhere to the "60-Day Payment" principle, with zero arrears as the standard, streamline the approval process, continuously strengthen departmental collaboration, and ensure efficient and smooth payment processes.

[Li Auto: Will Continue to Implement Payment Terms Within 60 Days]

Li Auto posted on Weibo that it has always been committed to creating safer, more comfortable, and more convenient products and services for users. Li Auto will continue to implement payment terms within 60 days and work with industry partners to jointly promote the high-quality development of China's automotive industry.

[NIO: Will Continue to Implement Payment Terms Within 60 Days]

NIO posted on Weibo that it is committed to becoming a user enterprise leading in technology and experience, existing for user satisfaction, developing ultimate products through technological innovation, providing services that exceed expectations, and building a community for common growth.

The healthy development of the supply chain system is the foundation for ensuring product quality and enhancing user experience. NIO will continue to implement payment terms within 60 days and work with upstream and downstream partners to jointly promote the high-quality development of China's automotive industry, creating a sustainable and better future together.

[XPeng Motors: Will Unify Payment Terms to Within 60 Days]

XPeng Motors posted on Weibo that in order to actively respond to and implement a series of deployment requirements from the state and relevant departments aimed at promoting the high-quality development of the automotive industry, ensuring the stability of the industry chain and supply chain, and supporting the healthy development of small and medium-sized enterprises, XPeng Motors has announced that it will unify payment terms to within 60 days. As a "pioneer in future mobility," XPeng Motors will actively fulfill its corporate social responsibility and commitment, striving to empower the industry chain and upstream and downstream partners through AI technological innovation, and jointly promoting the steady and far-reaching high-quality development of China's automotive industry.

[BAIC Group: Strictly Adhering to Settlement Within 60 Days for All Qualified Partners Starting Today]

BAIC Group posted on Weibo that starting today, it will strictly adhere to settlement within 60 days for all qualified partners, comprehensively cancel unreasonable settlement methods such as commercial acceptance bills that increase the financial pressure on suppliers, and alleviate the cash flow pressure on small and medium-sized suppliers.

Below are screenshots of announcements from major automakers: