Transitioning from a century-old gas car industry into one that relies on electricity and other alternative fuels was never going to be smooth. This shift is proving to be more turbulent than anticipated in China, the world’s largest EV and passenger car market.
The latest indicator of stress in the fiercely competitive Chinese EV market is the time brands are taking to pay their suppliers. According to data from Bloomberg, Nio took nearly 300 days to clear its dues towards the end of 2023, compared to 197 days in 2021. Similarly, Xpeng was taking an average of 221 days to pay its bills.
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