On March 28, the "price war" ignited by new energy vehicle companies is profoundly impacting the automotive industry chain. Financial reports from listed companies and on-site interviews reveal that numerous enterprises across the auto supply chain's upstream and downstream sectors are grappling with the dual pressures of pricing and payment terms, finding it challenging to maintain a harmonious balance between pursuing revenue growth and ensuring timely fund repatriation. The recently disclosed 2024 annual reports of automotive listed companies indicate that the expansion of accounts receivable and the lengthening of payment cycles have emerged as prominent trends. The substantial accounts payable and idle funds held by automakers have strained the cash flows of supply chain enterprises, posing a threat to the financial stability of the entire automotive industry chain. The majority of interviewees emphasized that this scenario is detrimental to fostering positive cycles. Consequently, effectively leveraging accounts receivable and securing profitability across the industry have become pressing issues that demand immediate resolution. Several interviewees contended that achieving efficient capital flows and implementing innovative strategies for developing new productive capacities are crucial for fostering healthy competition within the industry chain.
