Chinese Manufacturers Offer Extended Loan Tenures of Up to Seven Years

Jakarta (ANTARA) - The Chinese automotive market experienced sluggish sales at the beginning of this year. Several major manufacturers are addressing this challenge by offering extended loan tenures of up to seven years, as reported by CarnewsChina on Friday.

The major manufacturers offering these extended loan terms include BYD, Tesla, and Xiaomi.

According to the report, this effort to extend loan terms is accompanied by relatively low interest rates to encourage consumers to purchase new vehicles.

This programme is believed to have a positive impact on sales growth. Tesla, Xiaomi, Nio, and brands affiliated with Geely are following suit to remain competitive.

Meanwhile, BYD’s off-road sub-brand, Fangchengbao, has announced a similar financing programme for the long-range Bao 5 and Tai 7 models.

Industry observers say that this wave of extended financing coincides with weak market performance in China’s passenger vehicle sector in January.

According to data released by the China Passenger Car Association, national retail sales of passenger cars in January 2026 reached approximately 1.544 million units. This figure represents a decrease of about 13.9 per cent compared to the previous year.

Retail sales of domestic Chinese brands also fell by almost 18 per cent compared to the previous year.