Close Menu
Nabka News
  • Home
  • News
  • Business
  • China
  • India
  • Pakistan
  • Political
  • Tech
  • Trend
  • USA
  • Sports

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

India general admits jet losses in clash with Pakistan: Here’s what he said | India-Pakistan Tensions News

June 1, 2025

Fazlur Rehman announces nationwide protests against child marriage bill

June 1, 2025

UK plans $2bn weapons upgrade as Starmer calls for ‘war readiness’ | Weapons News

June 1, 2025
Facebook X (Twitter) Instagram
  • Home
  • About NabkaNews
  • Advertise with NabkaNews
  • DMCA Policy
  • Privacy Policy
  • Terms of Use
  • Contact us
Facebook X (Twitter) Instagram Pinterest Vimeo
Nabka News
  • Home
  • News
  • Business
  • China
  • India
  • Pakistan
  • Political
  • Tech
  • Trend
  • USA
  • Sports
Nabka News
Home » Chinese EV makers are having more trouble paying their bills, now taking two to three times longer than Tesla.
China

Chinese EV makers are having more trouble paying their bills, now taking two to three times longer than Tesla.

i2wtcBy i2wtcMay 20, 2024No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email WhatsApp Copy Link
Follow Us
Google News Flipboard Threads
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link


The time it takes for some Chinese electric car makers to pay their suppliers has ballooned, a further sign of stress in the country’s increasingly competitive auto market.

Nio Inc. took 197 days to settle outstanding receipts in 2021, the majority of which will be paid to suppliers by the end of 2023, according to the latest available data compiled by Bloomberg. It took approximately 295 days to settle the due receipts. Another US-listed Chinese EV maker, Xiaopeng, took between 179 and 221 days to fulfill its obligations to vendors and related parties, according to the data.

By comparison, Elon Musk’s Tesla Inc. takes only about 101 days, and that period has remained fairly stable over the past three years.

The lengthening of payment cycles is a sign that many automakers are under pressure in China, where economic growth remains weak and consumer sentiment is weak. That has led to a decline in demand for electric vehicles, and what was once a fast-growing market is now beset by intense price competition and tight profit margins.

Since the Chinese government phased out state subsidies for EV purchases in 2022, some small manufacturers have been pushed to the brink. WM Motors filed for restructuring in October, and Human Horizons Group, owner of luxury EV brand Hi-Fi, suspended operations for at least six months in February.

“Everyone is suffering,” said Jochen Sievert, managing director of consultancy JSC Automotive. “For manufacturers, lower prices mean less money coming in. So the money they owe suppliers may be necessary to maintain liquidity.”

Representatives for Mr. Nio and Mr. Shupen did not respond to requests for comment.

Siebert said payment delays are starting to trickle down to auto parts suppliers.

“Tier 3 and 4 suppliers are really going to be hurt because they can’t pass it on,” he said, adding that supplier bankruptcies will lead to “disruptive consolidation” in the EV sector and could quickly create problems for future automakers’ production. He added that it could cause

In fact, Minshi Group, an exterior parts supplier based in Jiaxing City, Zhejiang Province, saw its accounts receivable and notes receivable increase by more than 40% from the end of 2020 to 4.74 billion yuan as of December, according to data compiled by Bloomberg. 656 million), while cash and cash equivalents fell by almost a third to 4.2 billion yuan over the same period.

BYD’s main supplier Hunan Yuneng New Energy Battery Materials Co., Ltd. had accounts receivable and notes receivable of 10.43 billion yuan at the end of 2022, more than three times the same period last year, according to data compiled by Bloomberg. Cash reserves decreased to 435.2 million yuan.

“The price war won’t end soon, and the stress will eventually be passed on to suppliers,” said Zhu Lin, Shanghai-based managing director of regeneration management firm Alvarez & Marsal.

“More auto parts manufacturers are approaching us to improve their performance, and some are considering selling unprofitable businesses,” Zhu said. “Weak players in the supply chain will face a high risk of being kicked out of the game.”

Subscribe to the Eye on AI newsletter to stay up to date on how AI is shaping the future of business. You can apply for free.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email WhatsApp Copy Link
i2wtc
  • Website

Related Posts

China

Hainan Free Trade Port: Duty-Free industry booms with strengthening of supervision-Xinhua

June 1, 2025
China

Chinese well-drilling technology turns Egypt’s deserts into farmland-Xinhua

June 1, 2025
China

International Children’s Day celebrated across China-Xinhua

June 1, 2025
China

From retro games to AI workouts, China’s children jump into new era of school sports-Xinhua

June 1, 2025
China

Dragon Boat Festival celebrated across China-Xinhua

June 1, 2025
China

Hainan Free Trade Port to begin independent customs operations by end of 2025-Xinhua

May 31, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

India general admits jet losses in clash with Pakistan: Here’s what he said | India-Pakistan Tensions News

June 1, 2025

Swimming at the 2023 World Aquatics Championships Preview

January 5, 2020

21 Best Smart Kitchen Appliances 2024 – Smart Cooking Devices

January 6, 2020

World Music Day 2023: What Is It and Why Do We Celebrate It?

January 7, 2020
Don't Miss

This is what it is like to be held in solitary confinement in a US prison | Features

By i2wtcJune 1, 20250

In solitary, it was almost always freezing. Prisoners would wrap themselves in sheets and extra…

LAFC qualify for FIFA Club World Cup with win over Club America | Football News

June 1, 2025

China warns US not to ‘play with fire’ over Taiwan | Military News

June 1, 2025

Why Trump and Bukele are destroying Kilmar Abrego Garcia’s life | Migration

June 1, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

About Us
About Us

Welcome to NabkaNews, your go-to source for the latest updates and insights on technology, business, and news from around the world, with a focus on the USA, Pakistan, and India.

At NabkaNews, we understand the importance of staying informed in today’s fast-paced world. Our mission is to provide you with accurate, relevant, and engaging content that keeps you up-to-date with the latest developments in technology, business trends, and news events.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

India general admits jet losses in clash with Pakistan: Here’s what he said | India-Pakistan Tensions News

June 1, 2025

Fazlur Rehman announces nationwide protests against child marriage bill

June 1, 2025

UK plans $2bn weapons upgrade as Starmer calls for ‘war readiness’ | Weapons News

June 1, 2025
Most Popular

Venture capital creates US-based company to develop medicines developed in China

October 29, 2024

China converts kindergartens to elderly facilities as population crisis worsens

October 30, 2024

China sees record-breaking inter-regional trips in Spring Festival travel rush-Xinhua

February 23, 2025
© 2025 nabkanews. Designed by nabkanews.
  • Home
  • About NabkaNews
  • Advertise with NabkaNews
  • DMCA Policy
  • Privacy Policy
  • Terms of Use
  • Contact us

Type above and press Enter to search. Press Esc to cancel.