Xiaomi announced on Thursday that it will implement a seven-year low-interest financing incentive for its YU7 model in China.
The new incentive comes nine days after Tesla revealed exactly the same offer in the Chinese market.
The company’s co-founder and CEO Lei Jun said during a livestream that the offer will extend to all variants of its first fully electric SUV.
Between Friday and February 28, consumers will be able to purchase the model with a down payment starting at 49,900 yuan ($7,155), resulting in monthly installments of a minimum of 2,593 yuan ($372).
On January 6, Tesla announced near-zero interest financing for up to seven years in China, deployed for its Model 3, Model Y – which led 2025 sales across all powertrains – and Model Y L by the end of this month.
Under the promotion, customers can save up to 33,479 yuan – equivalent to $4,801 – compared with financing at the standard 2.50% annualized rate.
In China, the minimum down payment for Model 3 or Model Y is 79,900 yuan ($11,457), with monthly payments from 1,918 yuan and 2,263 yuan, respectively – a range between $275 and $325.
Additionally, consumers can buy Tesla‘s six-seat Model Y L variant for as low as 99,900 yuan, with monthly payments starting from 2,947 yuan ($423).
The US giant became the first automotive company to offer this kind of extended-term offer in the world’s largest EV market.
December Sales
Earlier this week, the China Passenger Car Association (CPCA) reported that sales of battery-electric vehicles (BEVs) achieved 940,000 units.
The figures increased 5.8% compared to December 2024 despite falling by 9.4% month-on-month.
Tesla‘s wholesale figures reached 97,171 fully electric vehicles in the last month of 2025.
Its Model Y became the highest-selling model across all powertrains, with 66,189 units sold.
This number includes more than 20,000 vehicles of its Model Y L, launched last August.
On the other hand, Xiaomi delivered a total of 50,212 EVs last December.
Of those, 39,089 were YU7 vehicles, representing 77.9% of the total sales.
YU7 Model
Launched last June, deliveries began in the following month.
The Chinese tech giant set a new industry record with over 240,000 locked-in orders in only 18 hours.
The model entered the market positioned as a direct rival to Tesla’s Model Y. The YU7 model is available in three different variants: Standard, Pro, and Max.
The SUV is priced from 253,500 yuan ($36,351) – 10,000 yuan ($1,434) below its direct competitor.
Model Y and Y L
Back in January 2025, Tesla debuted a refreshed Model Y in the Chinese market.
The model is available in Rear-Wheel Drive (RWD) with standard and long-range trims and in All-Wheel Drive (AWD) Long Range.
The fully electric SUV’s lowest price in China is 263,500 yuan – equivalent to $37,785 – in China.
In August 2025, Tesla launched a six-seat variant, the Model Y L, exclusively in the country, starting deliveries the following month.
The three-row SUV is available at 339,000 yuan ($48,500).
