Li Auto is the first local automaker to respond to Tesla's limited-time discount introduced for the Model Y on November 25.
Li Auto (NASDAQ: LI) has launched a 3-year 0 percent interest financing incentive for car purchases, after Tesla (NASDAQ: TSLA) began offering a limited-time discount on the Model Y earlier this month.
Customers who purchase and complete delivery of any of Li Auto's models on or before December 31 can take advantage of the incentive, the Chinese new energy-vehicle (NEV) maker announced today.
Li Auto's current model range includes the L-series extended-range electric vehicle (EREV) models -- Li L6, Li L7, Li L8, Li L9 -- and the all-electric Li Mega MPV (multi-purpose vehicle).
Buyers can make a minimum down payment of RMB 69,800 ($9,650) to drive home a Li Auto vehicle before the end of the year, the company wrote on Weibo.
A table shared by Li Auto shows that consumers can save between RMB 15,700 and RMB 27,700 in interest payments under the latest financing program.
If a consumer wants to finance a car purchase for five years, the annualized interest rate would be about 1.92 percent, according to the Li Auto poster.
Li Auto's 3-year 0-interest financing incentive
| Model | Starting price (RMB) | Minimum down payment | Interest saving |
|---|---|---|---|
| Li L6 Pro | 249,800 | 69,800 | 13,500 |
| Li L6 Max | 279,800 | 69,800 | 15,700 |
| Li L7 Pro | 301,800 | 99,800 | 15,100 |
| Li L7 Pro | 301,800 | 99,800 | 15,100 |
| Li L7 Max | 329,800 | 99,800 | 17,200 |
| Li L7 Uttra | 359,800 | 99,800 | 19,500 |
| Li L8 Pro | 321,800 | 99,800 | 16,600 |
| Li L8 Max | 349,800 | 99,800 | 18,700 |
| Li L8 Ultra | 379,800 | 99,800 | 21,000 |
| Li L9 Pro | 409,800 | 129,800 | 21,000 |
| Li L9 Ultra | 439,800 | 129,800 | 23,200 |
| Li Mega Utra | 529,800 | 159,800 | 27,700 |
Li Auto is the first local automaker to launch a response to Tesla's November 25 announcement of a time-limited RMB 10,000 discount in China for the Model Y's two lower-priced variants.
The Model Y is available in China in an entry-level rear-wheel-drive version, a long-range all-wheel-drive version, and an all-wheel-drive Performance option, with starting prices of RMB 249,900, RMB 290,900, and RMB 354,900, respectively.
Tesla's limited-time discount applies to the rear-wheel-drive and long-range all-wheel-drive versions of the Model Y, with the highest-priced all-wheel-drive Performance version excluded.
The US EV maker at the time also further extended the five-year, 0 percent interest financing incentive that applies to all variants of the Model 3 and Model Y to December 31.
Tesla launched the 5-year 0-interest financing incentive in China on April 3, marking the first time it has offered the program in the country.
Li Auto's move reflects the impact of Tesla's pricing strategy on China's intensely competitive EV market.
The Chinese automaker delivered 51,443 vehicles in October, up 27.26 percent from a year earlier but down 4.22 percent from September.
Li Auto on October 31 guided for fourth-quarter deliveries of between 160,000 and 170,000 vehicles, meaning a year-on-year increase of 21.4 percent to 29.0 percent, slightly higher than the 152,831 vehicles it delivered in the third quarter.
The guidance implies that Li Auto's monthly deliveries for the last two months of the year are likely to be at just over 50,000 units.
Li Auto's full-year 2024 deliveries will be in the range of 501,812 to 511,812 vehicles, according to the guidance.
Li Auto sees cheapest model Li L6 cross 150,000 deliveries
($1 = RMB 7.2352)
