Tesla, Xpeng reignite China EV price war with insurance and loan subsidies

Buyers of its Shanghai-made Model 3 sedans would receive an 8,000-yuan (US$1,098) subsidy for vehicle insurance, the US EV maker said on Wednesday as businesses reopened after the Lunar New Year holiday. It also said it would offer a five-year interest-free loan to eligible customers, which amounts to 20,000 yuan in savings.

Tesla said the incentives represented the biggest promotion for all its Model 3 editions – priced at 227,500 to 331,500 yuan – since late 2019, when its Gigafactory outside Shanghai started operations.

“It is the first time that insurance subsidies and interest-free loans are offered together to Chinese customers,” the company said in a statement. The offer ends on February 28, it added.

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China doubles down on subsidising trade-ins of conventional cars for EVs

China doubles down on subsidising trade-ins of conventional cars for EVs