BYD has introduced extended financing options for multiple electric and hybrid models in China, offering zero-interest and low-interest loans as automakers shift from price cuts to financial incentives to stimulate demand.
The company said vehicles in its Ocean lineup will be eligible for either three-year interest-free financing or seven-year low-interest loans through March 31. The programme allows zero down payment, with daily instalments starting at about 29 yuan ($4.20), along with trade-in subsidies of up to 21,000 yuan.
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Eligible models include the Seal 07 DM-i, Seal 06 series, Sealion 05 and 06 variants, Dolphin and Seagull. BYD’s premium Fang Cheng Bao brand has also introduced a seven-year loan programme for the Bao 5 and Tai 7 models, with down payments starting at 32,000 yuan and annualised interest rates from about 1.5%.
It remains unclear whether BYD will extend similar financing terms to models in its Dynasty lineup.
The move follows a broader shift across China’s auto industry toward financing incentives as regulators discourage aggressive price reductions that could trigger profit erosion and intensified competition. Market conditions in early 2026 have been affected by the seasonal sales lull and the gradual withdrawal of earlier stimulus policies.
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Tesla introduced seven-year low-interest auto loans in China earlier this year, prompting several domestic manufacturers — including Nio, Xiaomi, Li Auto, Xpeng and Geely — to adopt similar measures.
Automakers have historically relied on price cuts to boost sales, but such strategies have faced regulatory scrutiny. Extended loan terms and reduced upfront costs are now being used to lower barriers to vehicle ownership while preserving margins.
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Industry observers say the financing push aligns with government efforts to encourage consumer spending through expanded credit support, particularly in sectors such as automotive where demand has softened.