Source: XPeng

The year has just begun, but we are already seeing price war sparks in early February with XPeng being the latest to announce a 5-year interest-free financing plan on its vehicles.

The zero-interest financing does not require a down payment and is eligible on the XPeng X9, G9, P7i, and G6 until February 28.

Interest-free financing programs have been popular car purchase incentives with Tesla extending its 5-year zero-interest loan offer until end of December 2024.

Yesterday, Tesla announced another round of incentives with an 8,000 CNY insurance subsidy paired with its financing policy.

Just two hours later, XPeng launched its own promotion and is reportedly the industry’s only 5-year, zero-interest, zero down payment financing program.

January and February are typically weaker sales months in the automotive industry, partly due to the timing of Chinese New Year, during which most Chinese people are on holiday for approximately two weeks.

Source: XPeng

XPeng also launched a promotion on its best-selling MONA M03 from February 7 to 28 and buyers can receive a 888 kWh charging gift card, a 40,000 CNY sound system upgrade, and up to 3,000 CNY in trade-in subsidies.

In January 2025, XPeng delivered 30,350 vehicles, the third consecutive month with deliveries exceeding 30,000 units.

XPeng also regained the top selling emerging NEV brand title after 30 months, breaking Li Auto's 24-month streak as the monthly delivery leader.

On December 31, NIO had released a three-year zero-interest financing promotion to amp up car purchase incentives in January.

The promotion was later upgraded on January 31, 2025 to five-year zero-interest with a minimum 20% down payment, for a limited-time from February 1 to 28.

On November 28, Li Auto had also launched an interest-free financing program, but of a 3-year duration, for its end of year push.