- Xiaomi has introduced a 7-year low-interest financing incentive for all variants of the YU7, responding to Tesla's move earlier this month.
- The Xiaomi YU7 starts at RMB 253,500 ($35,390), undercutting the Model Y's RMB 263,500 base price.
Xiaomi (HKG: 1810, OTCMKTS: XIACY) has followed Tesla's (NASDAQ: TSLA) move in offering ultra-long-term low-interest financing for its popular SUV (sport utility vehicle) model amid intensifying competition.
The company's founder, chairman, and CEO Lei Jun announced during a livestream on Thursday that a 7-year low-interest financing incentive is available for all YU7 variants, representing an urgent response to Tesla's move.
Chinese customers ordering the YU7 between January 16 and February 28 can purchase the SUV with a down payment as low as RMB 49,900 ($7,160), resulting in monthly installments starting at RMB 2,593.
On June 26, 2025, Xiaomi officially launched the YU7, its first electric SUV and the most direct competitor to Tesla's Model Y.
The model starts at RMB 253,500, undercutting the Model Y's RMB 263,500 base price.
The YU7 delivered a record 39,089 units in December, bringing its 2025 total to 153,673 units, according to data compiled by CnEVPost.
However, the Xiaomi model — along with broader Chinese domestic SUVs — faces intensifying competition from Tesla's Model Y.
On January 6, amid sluggish early-year market in China, Tesla announced ultra-low-interest financing for up to seven years for Chinese customers purchasing Model 3, Model Y, or Model Y L by January 31.
This makes Tesla the first automaker to offer such an extended-term financing plan in China. Compared to the standard 2.50% annualized rate, consumers can save up to RMB 33,479.
Chinese customers can purchase a Model 3 or five-seat Model Y with a down payment of RMB 79,900, resulting in monthly payments as low as RMB 1,918 and RMB 2,263 respectively. For the six-seat Model Y L, the minimum down payment is RMB 99,900 with monthly payments as low as RMB 2,947.
In December, Model Y retail sales in China reached a record 65,874 units, bringing the full-year 2025 total to 425,337 units.
($1 = RMB 6.9672)
