New 'stimulus' in the car market:' 5-year zero interest 'is not enough,' 7-year low interest 'is better

At the beginning of 2026, the battle between car companies for the "Spring Festival period" has already begun. Tesla took the lead by not only reintroducing the "5-year zero interest" policy, but also launching a "7-year low interest" loan car purchase plan. Xiaomi, Xiaopeng, Ideal, Geely Galaxy, and Lantu quickly followed suit and joined the "7-year low interest" team, with the discount deadline ranging from the end of January to February. This scene is not unfamiliar. Before the Spring Festival in 2025, car companies had already launched a "5-year zero interest" promotion wave, with Tesla, NIO, and Xiaopeng being the main players. In February last year, the "Notice on Developing Consumer Finance to Boost Consumption" extended the loan term for personal consumption from "no more than 5 years" to "no more than 7 years". Subsequently, most car companies introduced a "5-year, 0 interest" loan purchase policy. On the basis of "5-year zero interest" policy, car companies have added "7-year low interest" loan car purchase discounts, which not only stimulate "Spring Festival" car purchase consumption, but also offset the impact of subsidy refunds. According to data from the China Association of Automobile Manufacturers, the retail sales of passenger cars in China experienced a double-digit decline in the first half of January. Considering factors such as the halving of the new energy purchase tax and consumption tightening, the automotive industry is not optimistic about the car market forecast for 2026. However, currently both the financial and automotive industries have issued risk warnings for the "7-year low interest" policy, reminding consumers to conduct comprehensive evaluations in various aspects such as annualized rates, additional purchase terms, and overall costs. The "5-year zero interest" Spring Festival promotion in 2025 has brought great benefits to car companies, and they are confident that this effect can be repeated this year.