BYD (HKG:1211, SHE:002594) said it will actively support an industry initiative requiring automakers to make supplier payments on time, Reuters reported Monday.

The electric vehicle maker said it will strengthen processes across order confirmation, delivery, payment and settlement, and contract duration to ensure suppliers are paid promptly, according to the report.

The pledge follows similar commitments from SAIC Motor (SHA:600104), Changan (SHE:000625), Chery and Xiaomi (HKG:1810) after the China Association of Automobile Manufacturers issued new rules, the report said.

The framework specifies that goods must be accepted within three working days, which starts the 60-day payment countdown, with settlement to be made via cash or bankers' acceptance, the report said.

China's Ministry of Industry and Information Technology over the weekend pledged tighter oversight on an auto market facing weak demand and "disorderly competition," setting annual sales targets below CAAM's earlier forecasts, Reuters added.

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