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CAAM's 60-Day Payment Policy Eases Cash Flow Strain for Fast

[Abstract]:In September 2025, the China Association of Automobile Manufacturers (CAAM) issued the Initiative on Payment Standards for Supplier Accounts by Complete Vehicle Enterprises.

In September 2025, the China Association of Automobile Manufacturers (CAAM) issued the Initiative on Payment Standards for Supplier Accounts by Complete Vehicle Enterprises. Major automakers including FAW, Dongfeng, Changan, Li Auto, and Xiaomi quickly responded, pledging to pay their suppliers within 60 days. This initiative directly tackles the long-standing pain points of "extended payment periods and difficult collections" faced by automotive fastener companies, effectively alleviating financial pressure on SMEs and fostering a "symbiotic and win-win" supply chain ecosystem.

For a long time, excessively long payment cycles have been a chronic issue in the automotive supply chain. Amidst fierce competition in the new energy vehicle (NEV) sector, some OEMs prolonged payment periods through tactics like "delayed acceptance" and "protracted reconciliation." Consequently, the average payment period for automotive fastener enterprises stretched from 65 days in 2020 to 98 days in 2024, with some SMEs facing delays exceeding 180 days. A representative from a Zhejiang-based automotive fastener company noted that accounts receivable accounted for 68% of their operating revenue; slow capital recovery severely hampered R&D investment, causing them to miss out on multiple technological upgrade opportunities. This practice of "large corporations tying up funds" has significantly stifled innovation and sustainable growth within the fastener industry.

The implementation of the 60-day pledge by 17 major automakers has led to a marked improvement in supply chain liquidity. According to the CAAM initiative, automakers must complete acceptance checks within 3 working days of receiving goods, with overdue inspections deemed as automatic approval. The payment cycle is capped at a maximum of 60 days starting from the date of successful acceptance, and payments to SMEs must be made via cash or bank acceptance bills. Automakers swiftly rolled out specific execution plans: Changan Automobile pioneered a "counting from delivery date + ten-day consolidated payment" model to fully honor the 60-day term; SAIC Motor unified its payment period to 60 days starting June 2025, banning commercial acceptance bills in favor of direct cash payments; while Li Auto and Xiaomi established dynamic monitoring systems allowing suppliers to track payment progress in real-time. These measures shortened the average payment period for automotive fastener companies to 58 days, releasing over 100 billion yuan in working capital.

The relief from financial pressure has directly ignited innovation among fastener manufacturers. A medium-sized fastener enterprise in Ningbo reinvested the financial savings from the shortened collection cycle entirely into the R&D of intelligent anti-loosening nuts, successfully overcoming the technical challenge of keeping preload deviation under 5%, which earned them an exclusive supply contract with Li Auto. Industry data shows that in Q3 2025, R&D spending among automotive fastener companies grew by 23% year-on-year, and new patent applications surged by 41%, with NEV-specific fastener patents accounting for 65%. Improved liquidity also fueled capacity expansion, prompting multiple companies to launch production line upgrades and boosting high-end fastener capacity by 37% year-on-year.

This payment reform is reshaping the entire automotive supply chain ecosystem. For OEMs, shortening payment cycles has forced internal management optimization and improved supply chain efficiency through digital transformation. For instance, SAIC Motor introduced blockchain settlement technology to digitize the entire process of ordering, acceptance, and settlement, improving reconciliation efficiency by 80%. For the broader supply chain, the accelerated flow of capital has concentrated resources toward top-tier enterprises, gradually phasing out SMEs reliant on outdated technology and cutthroat price competition, thereby increasing overall industry concentration. As CAAM experts point out, OEMs and component suppliers share a "fish and water" relationship. The 60-day payment pledge is not just financial support but an upgrade in the philosophy of collaborative industrial development, propelling China's auto industry from being merely "big and comprehensive" to becoming "strong and specialized."

As policies continue to deepen, more automakers are expected to join this standardized payment initiative in 2026. The automotive fastener industry is poised to enter a much healthier developmental environment, providing a solid foundation for the high-quality advancement of China's new energy vehicle sector.

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CAAM's 60-Day Payment Policy Eases Cash Flow Strain for Fast

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