low-interest loans

China's EV Giants Ignite 7-Year Low-Interest Loan War

China's 2026 EV market explodes into a 'financial war' as Tesla's 7-year 0.98% loans for Model 3/Y prompt Xiaomi, Li Auto, XPeng, and Geely to counter with similar schemes, slashing monthly payments to lure buyers. While bank loans offer quick ownership, rivals' financing leases hide higher true costs (up to 4.7% rates) and risks like delayed title transfer. This shift from price wars boosts sales but erodes profits, contrasting global EV gains in Thailand amid UK slumps.