Automakers in China roll out longer-term financing plans to spur demand

Published Wed, Feb 4, 2026 · 09:35 PM

[BEIJING] Automakers in China are extending repayment terms for customers to as long as eight years, to woo consumers amid stagnant demand in the world’s largest auto market.

Nissan’s joint venture with state-owned automobile manufacturer Dongfeng on Tuesday (Feb 3) joined at least 10 other car brands, including Xpeng, Xiaomi and Geely, in offering longer-term low-interest financing plans, based on Reuters’ checks.

Dongfeng Nissan’s eight-year plan requires zero down payment, and it advertised that customers buying its Sylphy Classic model would need to make a daily repayment of only 27 yuan (S$4.94), roughly the amount to buy a coffee a day.

Tesla, often viewed as a trendsetter in the electric vehicle market, was the first to offer a seven-year plan in China in January, prompting its rivals to introduce similar seven-year offerings with a down payment.

The incentives for Model 3 and Model Y purchases until the end of February include an extension of earlier plans of up to five years, with no down payment.

Car loans in China previously carried a maximum term of five years, but the country’s financial regulator loosened the rules in 2025 to extend consumer loan terms to no longer than seven years, to boost weak consumption.

The repayment term extension also comes as China’s auto market is on track for its worst year since 2020, when the Covid-19 pandemic began, as the government scales back subsidies for trading in budget vehicles that make up the bulk of new car sales.

Dongfeng and Nissan have not responded to requests for comment on how the eight-year plan aligns with regulatory rules. REUTERS