Li Auto has begun offering Chinese consumers financing plans of up to seven years with reduced interest rates across its model range, joining rivals Tesla and Xiaomi in using credit incentives to stimulate demand.
Li Auto said on Tuesday that the programme applies to its full lineup, including the Li L6, Li L7, Li L8, and Li L9 extended-range sport utility vehicles, as well as the all-electric Li i6 and Li i8 SUVs and the Li Mega multi-purpose vehicle. Buyers are required to make a minimum down payment of 15%.
Under the offer, minimum monthly payments start from 2,578 yuan ($370). For the Li L6, L7, L8, L9 and Li i6, the annualised fee rate is set at 2.5%, which the company said corresponds to an effective annualised interest rate of about 4.69% to 4.71%. Customers purchasing the Li Mega and Li i8 are eligible for a lower annual fee rate of 1.69%, equivalent to an annualised interest rate of roughly 3.22% to 3.23%.
The move follows recent steps by competitors. Tesla began offering ultra-low-interest financing on locally produced Model 3 and Model Y vehicles in China on Jan. 6, marking its first such initiative in the market. Xiaomi announced on Jan. 15 that it would introduce a similar seven-year low-interest financing programme for its YU7 model.
Li Auto is a major player in China’s extended-range electric vehicle segment, but the company has faced pressure from slowing sales over the past year. As demand for EREV models has weakened, its battery-electric vehicles have yet to make a significant contribution to overall volumes, increasing competition in a market where automakers are increasingly relying on pricing and financing incentives to attract buyers.
