Tesla China recently announced a zero downpayment program for its inventory of Model 3 sedans and Model Y crossovers. This move is likely intended to bolster domestic sales in China and was revealed on the company’s official Weibo account. The program is available for customers who purchase a Model 3 or Model Y before the end of the second quarter, but it only applies to inventory vehicles and showroom units.
As part of the zero downpayment program, Tesla China stated that customers buying an inventory Model 3 sedan could benefit from an annualized interest rate starting at 4.58%. This could result in daily payments as low as RMB 145 ($20.01), providing good value for what the Model 3 offers. Alternatively, customers have the option to make a downpayment of at least RMB 79,990 ($11,000), leading to a daily payment of just RMB 95 ($13.11).
It’s worth noting that this is not the first time Tesla China has offered a zero downpayment program for the Model 3 and Model Y. A similar program was introduced in November 2021 but was quickly retired. The presence of competitors has prompted a more aggressive approach from Tesla China in the market.
Elon Musk, CEO of Tesla, acknowledged the market competition and stated that Tesla’s performance in China has been better than that of its competitors. This suggests that despite challenges, Tesla’s sales drop in China has been less significant compared to its competitors.