Today, Tesla launches new ‘zero down payment’ and ‘zero interest rate’ financing programs in China as the company is trying to expand in this increasingly important market. Earlier this year, we reported on Tesla testing a similar program for a limited time with the China Merchants Bank, but now the new programs have been tweaked and will run for the rest of the year in partnership with Fosun, a Chinese financial service company.
The new program will apply to the Model S 90D, which buyers will be able to finance with no interest over a year or with 2 and 6 percent interest rates over 2 and 3 years respectively.
Another version of the program will enable buyers to finance the Model S 75 without any down payment.
While the custom financing programs are an improvement on Tesla’s available financing in China, the Model S remain an expensive vehicle in the country. The lowest monthly payment is ¥22,983 Chinese Yuan ($3,450 US) and the Model S 75 starts at ¥735,700 Chinese Yuan ($111,800 US)
Here are the terms of the offers:
Tesla recently achieved its projected production rate of 2,000 cars per week and now that the company is not (or less) production constrained, it is looking to expand to new markets and increase its volume in existing markets.
The automaker recently launched the Model X in China, which should boost its deliveries in the country. The new financing program combined with the introduction of the new Model S with a refreshed fascia and the HEPA air filtration could also help raise sales in the country.
In the past, Tesla admitted to weakness in sales in the China which it attributed in part to misconceptions about charging. To remedy the situation, the company has installed now more than 340 Superchargers and 1,600 destination chargers across the mainland. The company also launched ‘Tesla Charging Partner Program’ in China to promote a national EV charging standard.