Media365
“All EV makers are facing a dilemma this year as rising raw-material costs eat into their profit margin, which prevents them from offering steep price cuts even though overall market demand has turned weak,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “The new incentives show Tesla and other premium EV makers’ eagerness to lure more buyers.”
In January, Tesla China said it would charge annualised interest of 1.36 per cent on a seven-year car loan, enabling buyers to pay less than 2,000 yuan (US$288) a month to own a Shanghai-made Model 3 or Model Y after a down payment of about 80,000 yuan.
It was the first time that an automotive firm in mainland China granted a seven-year loan to car buyers, the previous maximum being five years, and the rate was lower than the normal 3 per cent for consumption loans.
