Tesla has begun offering ultra-long-term, low-interest financing across its locally produced vehicle lineup in China, as the automaker moves to soften the impact of a newly implemented purchase tax on electric vehicles.
The U.S. company said Chinese customers who order a locally built Model 3, Model Y, or the six-seat Model Y L by Jan. 31 will be eligible for financing terms of up to seven years. Tesla said this is the longest financing period currently offered by an automaker in the Chinese market.
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Under the programme, the annualised fee rate can be as low as 0.5%, equivalent to an annualised interest rate of about 0.98%, according to Tesla China’s website. Compared with a standard annualised rate of 2.5%, the company said buyers could save as much as RMB 33,479 ($4,790) over the life of the loan.
The financing package allows customers to purchase a Model 3 or five-seat Model Y with a minimum down payment of RMB 79,900, resulting in monthly payments starting at RMB 1,918 and RMB 2,263 respectively. For the six-seat Model Y L, the minimum down payment is RMB 99,900, with monthly payments from RMB 2,947.
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Tesla is also continuing to offer a five-year, zero-interest financing option for all locally produced models, marking the first time the Model Y L has been included in that incentive. In China, the five-seat Model Y is currently priced from RMB 263,500, while the Model Y L starts at RMB 339,000. The Model 3 lineup ranges from RMB 235,500 to RMB 339,500.
The move comes as China reintroduces a purchase tax on new energy vehicles. From 2026 to 2027, NEVs will be subject to a reduced purchase tax rate of 5%, half the standard 10% rate. Previously, EVs were exempt from the tax, although a cap applied to the maximum exemption amount.
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Several domestic Chinese EV makers have said they will absorb the purchase tax for buyers in early 2026, intensifying competition in the world’s largest electric vehicle market. Tesla’s extended low-interest financing underscores how automakers are adjusting sales strategies to sustain demand as policy support is gradually scaled back.
