GAC Group: Dealers to Receive Rebates Within Two Months

In a move that underscores the growing importance of financial stability within the automotive supply chain, Guangzhou Automobile Group (GAC Group) announced a commitment today that could ripple across the industry. The company, recognizing the vital role of its dealer network in ensuring customer service and experience, has pledged to accelerate its rebate payments.

Responding to calls for a healthier automotive ecosystem from the China Automobile Dealers Association, GAC Group, encompassing brands like Aion, Trumpchi, and Toyota Joint Venture, among others, has committed to finalizing dealer rebates within two months. This proactive step aims to foster high-quality development within the automotive sector.

This announcement follows a wave of similar commitments from leading automakers earlier this month, with GAC Group, along with FAW Group, Dongfeng Motor, and others, vowing to limit payment terms to suppliers to within 60 days.

These industry-driven initiatives align with broader regulatory trends. The State Council’s 43rd Executive Meeting, held on October 18, 2024, revised and approved the “Regulation on Guaranteeing Payment to Small and Medium-sized Enterprises,” which was officially announced on March 17 of this year and will take effect on June 1, 2025. The regulation stipulates that government agencies and public institutions must pay small and medium-sized enterprises within 30 days of receiving goods, engineering services, or services, with a maximum payment term of 60 days if otherwise agreed upon in the contract.

GAC Group’s commitment to swift dealer rebate payouts sets a precedent for the industry. The question now is, will other major players follow suit? Market observers will be watching closely for similar announcements.