Xpeng said it has begun offering low-interest financing with terms of up to seven years in China, joining a growing list of electric vehicle makers seeking to stimulate demand in a highly competitive market without resorting to outright price cuts.
The company said on Thursday via Weibo that customers purchasing any Xpeng model between Jan. 21 and Jan. 31 are eligible for the seven-year low-interest plan across its entire lineup. For the Mona M03 electric sedan, which starts at 119,800 yuan ($17,210), the offer translates into monthly payments as low as 1,355 yuan with a 15% down payment.
See also: Xpeng Expands Global Retail Network to Over 1,000 Outlets in 2025
Although the incentive is time-limited, similar promotions in China’s auto market often become longer-term tools as competition intensifies and consumer demand remains under pressure.
Xpeng’s move follows a similar initiative by Tesla, which announced a seven-year low-interest financing plan in China on Jan. 6. Tesla said the offer could save buyers up to 33,479 yuan, making it the first automaker in the country to introduce such extended loan terms. The timing coincides with China’s plan to begin levying purchase taxes on electric vehicles in 2026, while national trade-in subsidies remain in flux.
See also: Xpeng Plans Local Supply Chain Teams in Europe, ASEAN to Support Overseas Expansion
Other automakers have quickly followed suit. Xiaomi’s EV unit rolled out comparable incentives for its YU7 sport utility vehicle on Jan. 15, and Li Auto introduced its own version on Jan. 20.
Extended low-interest financing has emerged as a preferred strategy for EV makers looking to lower effective purchase costs while avoiding aggressive price cuts, which regulators have warned could destabilise the industry. On Jan. 14, several government agencies, including China’s Ministry of Industry and Information Technology, held a symposium with new energy vehicle manufacturers, calling for orderly competition and resistance to “disorderly price wars.”
See also: Xpeng Targets Up to 600,000 Vehicle Deliveries in 2026, Report Says
At the same time, Chinese authorities have repeatedly emphasised the need to strengthen financial support for automotive consumers and reduce barriers to vehicle ownership. Automakers’ growing reliance on longer-term financing reflects those policy signals, as well as mounting pressure to defend market share in the world’s largest EV market.
