- Xpeng joins Tesla, Xiaomi, and Li Auto in offering ultra-long-term, low-interest financing for vehicle purchases.
- This approach helps reduce vehicle purchase costs while avoiding price wars.
Xpeng (NYSE: XPEV, HKG: 9868) has also begun offering low-interest financing with extended terms in China, joining Tesla (NASDAQ: TSLA), Xiaomi (HKG: 1810, OTCMKTS: XIACY), and Li Auto (NASDAQ: LI, HKG: 2015).
The company announced on Weibo Thursday that Chinese consumers purchasing its models between January 21-31 can enjoy a 7-year low-interest financing plan applicable to its entire lineup.
Under the plan, for the Xpeng Mona M03 electric sedan starting at RMB 119,800 ($17,210), consumers can enjoy monthly payments as low as RMB 1,355 after paying a 15% down payment.
Although this benefit is time-limited, such promotions often become permanent in China's fiercely competitive automotive market.
Tesla announced its 7-year low-interest financing plan in China on January 6, as the country begins imposing purchase taxes on EVs in 2026 and national trade-in subsidies remain in transition.
This makes Tesla the first automaker in China to offer such an extended financing term, claiming it could save consumers up to RMB 33,479.
Xiaomi EV announced similar incentives for its YU7 SUV on January 15, followed by Li Auto's move on January 20.
For EV makers facing intense competition in China, 7-year low-interest financing plans represent an ideal strategy. They help reduce purchase costs while avoiding the price wars regulators wish to prevent.
On January 14, multiple government departments, including China's Ministry of Industry and Information Technology, convened a symposium with new energy vehicle (NEV) industry players, emphasizing the need to regulate competition and resist "disorderly price wars."
Meanwhile, over recent months, China has repeatedly stressed the need to enhance financial support for automotive consumers and lower barriers to vehicle ownership.
($1 = RMB 6.9612)
