Li Auto, a Chinese new energy-vehicle (NEV) maker, has recently responded to Tesla’s limited-time discount introduced for the Model Y by launching a 3-year 0 percent interest financing incentive for car purchases. This move comes after Tesla began offering a discount on the Model Y earlier this month, prompting Li Auto to follow suit with its own attractive financing program.
Customers who purchase and complete delivery of any of Li Auto’s models on or before December 31 can take advantage of this incentive. The current model range includes the L-series extended-range electric vehicle (EREV) models – Li L6, Li L7, Li L8, Li L9 – and the all-electric Li Mega MPV (multi-purpose vehicle). With a minimum down payment of RMB 69,800 ($9,650), buyers can drive home a Li Auto vehicle before the end of the year.
Under the new financing program, consumers can save between RMB 15,700 and RMB 27,700 in interest payments. If a consumer chooses to finance a car purchase for five years, the annualized interest rate would be about 1.92 percent, according to Li Auto’s poster.
Li Auto’s response to Tesla’s pricing strategy reflects the intense competition in China’s EV market. Tesla’s limited-time discount for the Model Y applies to the rear-wheel-drive and long-range all-wheel-drive versions, excluding the all-wheel-drive Performance option. The US EV maker also extended the five-year, 0 percent interest financing incentive for all variants of the Model 3 and Model Y until December 31.
With Li Auto aiming for fourth-quarter deliveries of between 160,000 and 170,000 vehicles, the company is making strategic moves to attract customers and boost sales in the competitive EV market. The guidance suggests that Li Auto’s monthly deliveries for the last two months of the year are expected to be just over 50,000 units, with full-year 2024 deliveries projected to be in the range of 501,812 to 511,812 vehicles.
In conclusion, Li Auto’s 3-year 0 percent interest financing incentive is a response to Tesla’s pricing strategy and a strategic move to attract customers in the competitive Chinese EV market. With attractive financing options and a range of electric vehicle models, Li Auto is positioning itself to capture a larger share of the market and drive growth in the coming year.
