Automakers in China introduce extended financing plans to stimulate consumer demand in a sluggish market. Companies now offer car loans with repayment terms as long as eight years. This significantly increases the previous maximum term of five years.
The industry responds to weakening domestic demand. The end of the new energy vehicle (NEV) purchase tax exemption also drives the change. These factors impacted sales at the start of 2026.
Major brands, including Nissan, Xpeng, Xiaomi, Geely, and Tesla, participate in these new financing strategies. Li Auto was not specifically named in the report. These incentives aim to make new vehicles more affordable on a daily or monthly basis, signaling an intensification of competition.