Automotive Industry Update: Guangzhou Automobile Group Co Ltd and Industry-Wide Payment Commitments
In a significant move within China’s automotive sector, several major car manufacturers, including Guangzhou Automobile Group Co Ltd, have pledged to standardize their payment terms to suppliers, ensuring payments are made within 60 days. This initiative aims to stabilize the supply chain and promote high-quality development in the industry.
Guangzhou Automobile Group Co Ltd Overview
Guangzhou Automobile Group Co Ltd, based in Guangzhou, China, is a prominent player in the automobile manufacturing industry. The company specializes in producing a variety of vehicles, motorcycles, and other automotive products. Additionally, it offers services in automobile parts manufacturing, automotive business services, and automotive finance. The company’s stock is traded on the Hong Kong Stock Exchange, with a market capitalization of 56,485,289,792 CNY as of June 8, 2025. The close price on this date was 7.66 CNY, with a 52-week high of 10.84 CNY and a low of 7.07 CNY.
Industry-Wide Payment Commitments
The commitment to a 60-day payment term has been echoed by several key players in the industry. On June 10, 2025, companies such as BYD, Dongfeng Motor, China FAW Group, and Guangzhou Automobile Group announced their adherence to this payment standard. This move is part of a broader effort to ensure the stability of the supply chain and support the healthy development of small and medium-sized enterprises (SMEs).
Following these announcements, other major automotive companies, including Geely and Changan, also confirmed their commitment to the 60-day payment term. Geely emphasized its dedication to corporate social responsibility and alignment with national policies, aiming to create a fair and orderly market environment. Changan, along with its subsidiaries, pledged to support the efficient flow of funds within the supply chain, fostering a collaborative environment for industry growth.
Earlier in the day, Guangzhou Automobile Group reiterated its commitment to maintaining a 60-day payment term for suppliers, highlighting its ongoing efforts to ensure efficient capital circulation within the supply chain. This commitment aligns with the broader industry trend and regulatory expectations, as outlined in the “Regulations on Ensuring Timely Payment of Small and Medium Enterprises,” which took effect on June 1, 2025.
Market Reaction
The announcement has positively impacted the automotive parts sector, with stocks such as Meirike Technology surging by 20% and other companies like Xiner Technology and Tongxin Transmission experiencing gains of over 5%. This market response reflects investor confidence in the stability and growth prospects of the automotive supply chain.
Conclusion
The collective commitment by major automotive companies to standardize payment terms to suppliers marks a significant step towards stabilizing the supply chain and promoting sustainable growth in China’s automotive industry. Guangzhou Automobile Group Co Ltd, along with other industry leaders, plays a crucial role in this initiative, demonstrating a commitment to corporate responsibility and industry collaboration.