Reported 2 days ago
China's auto industry is facing severe financial strain due to overcapacity and a price war that has alarmed regulators and industry leaders. Key metrics have deteriorated, with average supplier payment periods lengthening and inventory levels soaring. New regulations aim to enforce quicker payments, but major firms like BYD, Nio, and Xpeng are still struggling with long payment cycles and negative margins despite some improvements. The sector's debt has surged, raising concerns about its long-term viability.
Source: YAHOO