- BYD's Ocean lineup and Fang Cheng Bao sub-brand have launched a 7-year low-interest financing plan, following similar offers from over a dozen other automakers.
- With Chinese regulators discouraging direct price wars, domestic automakers are intensively shifting toward competing for consumers through relaxed financial policies.
China's largest new energy vehicle (NEV) maker BYD (HKG: 1211, OTCMKTS: BYDDY) has officially joined the ultra-long-term auto loan promotion camp initiated by Tesla (NASDAQ: TSLA).
BYD Ocean lineup sales head announced on Wednesday that from now until March 31, multiple BYD models will be eligible for 3-year zero-interest or 7-year low-interest financing plans.
The program supports zero down payment with daily payments as low as RMB 29 ($4.2), plus up to RMB 21,000 trade-in subsidies.
Eligible models include the BYD Seal 07 DM-i, Seal 06 GT, Seal 06 DM-i, Seal 06 DM-i wagon, Seal 06 EV, Sealion 06 DM-i, Sealion 06 EV, Seal 05 DM-i, Sealion 05 EV, Dolphin, and Seagull.
BYD's personalized brand Fang Cheng Bao also introduced a 7-year extended loan policy for the Bao 5 and Tai 7 models, featuring down payments starting at RMB 32,000 and annualized rates as low as 1.5%.
It remains unclear whether BYD's Dynasty lineup will follow suit.
With Chinese regulators discouraging direct price wars, domestic automakers are increasingly shifting to competitive financial policies to attract consumers.
Entering 2026, China's auto market faces pressure from slowing demand due to the combined impact of the traditional sales off-season and the tapering of earlier stimulus policies.
Since Tesla pioneered unconventional 7-year low-interest financing in China this January, over a dozen automakers including Nio Inc (NYSE: NIO, HKG: 9866), Xiaomi (HKG: 1810, OTCMKTS: XIACY), Li Auto (NASDAQ: LI, HKG: 2015), Xpeng (NYSE: XPEV, HKG: 9868), and Geely Auto (HKG: 0175, OTCMKTS: GELYF) have followed suit.
In recent years, Chinese automakers typically responded to sluggish sales with direct price cuts, but this eroded profits and drew regulatory scrutiny over cutthroat competition.
This financial warfare — extending loan terms while lowering down payment and monthly payment thresholds — lowers barriers to car ownership for consumers and aligns with the Chinese government's policy push to increase financial support for auto consumption.
($1 = RMB 6.8695)
