BEIJING, Feb 4 (Reuters) – 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 Dongfeng joined at least 10 other car brands, including Xpeng, Xiaomi and Geely, on Tuesday in offering longer-term low-interest financing plans, according to Reuters’ checks.
Dongfeng Nissan’s eight-year plan requires zero down payment and advertised that customers buying its Sylphy Classic model would only need to make a daily repayment of as low as 27 yuan ($3.89), roughly the amount to buy a coffee per 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 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 last year 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 did not immediately respond to a Reuters request for comment on how the eight-year plan aligns with regulatory rules.
($1 = 6.9361 Chinese yuan renminbi)
(Reporting by Qiaoyi Li and Brenda Goh; Editing by Christian Schmollinger)
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