Chinese Automakers Unite, NIO Becomes Latest To Promise Faster Payments

NIO Inc. NIO announced on Wednesday its commitment to support supply chain stability by accelerating payments to its suppliers.

The healthy development of the supply chain system is the foundation for ensuring product quality and enhancing user experience, NIO said in a post on the Chinese social media platform Weibo.

“We will continue to implement payment terms within 60 days, and work with upstream and downstream partners to jointly promote the high-quality development of China’s automobile industry and create a sustainable and better future,” the post read.

Also Read: Tesla Rival Nio Says It Will Cut R&D Spending By Around 25% To Meet ‘Breakeven Target’ Amid Europe Expansion Plans

The automaker said its priority remains delivering a premium user experience while embracing technological leadership and operational transparency.

The Chinese EV firm, alongside Xpeng Inc. XPEV and Li Auto Inc. LI, announced that it would honor invoice payments within 60 days or less, a step aligned with efforts by regulators to stabilize the country’s automotive ecosystem, CnEV Post reports.

This move mirrors commitments made earlier by several prominent players in the Chinese auto market.

Companies such as BYD Co. Ltd. BYDDY, Geely Auto, Xiaomi EV, Leapmotor, and Chery have already pledged to adopt more transparent and timely payment practices, the report adds.

So far, nearly 15 automakers have publicly joined the initiative.

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Mounting concerns over extended payment cycles to suppliers have drawn criticism in recent years, especially amid intensified pricing battles across China’s EV sector.

Delayed payments have posed risks to smaller component makers, potentially straining supply chain security and sustainability.

Recently, NIO reported first-quarter revenue of $1.37 billion, representing a decrease of 7.2% year-over-year and missing the analyst consensus estimate of $1.48 billion.

The company announced a quarterly adjusted loss of 36 cents per share, which was wider than the analyst consensus estimate for a loss of 31 cents per share.

Vehicle deliveries for the quarter totaled 30,053, a decrease of 3.2% year-over-year. The company’s vehicle margin was 9.2%, while the overall gross margin came in at 4.9%.

Looking ahead, NIO expects to deliver between 54,000 and 56,000 vehicles in the second quarter. The company issued second-quarter revenue guidance of between $2.29 billion and $2.36 billion.

Price Action: NIO shares are trading lower by 0.52% to $3.79 at last check Wednesday.

Read Next:

• Tesla Rival Nio Says It Will Cut R&D Spending By Around 25% To Meet ‘Breakeven Target’ Amid Europe Expansion Plans

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