When Growth Outruns Cash Flow: The Lesson Behind Leapmotor’s Milestone

Leapmotor just celebrated its one-millionth EV rolling off the line — a major milestone for the young Chinese automaker.

But almost at the same time, founder Zhu Jiangming was listed as a “dishonest debtor” over a payment dispute worth 3.6 million yuan, triggering temporary spending restrictions.

The contrast couldn’t be sharper.

Behind the celebration lies a warning:

Leapmotor’s average payment cycle has reached 182 days, nearly triple China’s legal standard of 60 days for supplier payments.

Zhu later explained it as a “process oversight” and lifted the restriction within days.

Yet the incident pulled back the curtain on a broader trend — some EV startups have been trading payment delays for growth, stretching supply chains and exposing fragile ecosystems.

In 2024, Chinese automakers’ average payment terms still hover around 170–200 days, while companies like Tesla and Toyota keep them under 60.

The message is clear: Leapmotor’s case isn’t an exception — it’s a symptom of imbalance in an industry racing ahead of its financial fundamentals.

🔹 In the EV revolution, speed is vital — but cash flow discipline is survival.