On January 6th, Tesla China announced car purchase discounts, introducing a &#34;7-year ultra-low interest&#34; purchase plan for the Tesla Model 3/Y/Y L. Taking the Model Y as an example, the down payment starts at 79,900 yuan, with monthly payments as low as 1,918 yuan; the aforementioned models can also choose a &#34;5-year 0 interest&#34; purchase plan, with the Model Y L series participating for the first time.
Following closely, GAC Group also announced that its self-owned brands would launch promotional activities, including a limited-time purchase tax guarantee policy, financial interest subsidy policy, and additional subsidies for trade-ins or scrapping. For example, GAC Trumpchi stated that the &#34;government-enterprise subsidy,&#34; which includes &#34;national subsidies&#34; and purchase rights, can reach up to 70,000 yuan.
Prior to this, several car manufacturers had announced promotional policies for the first month of the New Year in 2026.
Nio's Firefly brand released a notice offering purchase rights to locked-in users, including 10 years of intelligent navigation assistance services and a 2,000 yuan purchase tax subsidy. Additionally, it provided repurchase rewards to owners of Nio, LeDao, and Firefly brand vehicles.
Once &#34;hard to come by,&#34; Xiaomi Cars has also launched multiple promotions for the Xiaomi YU7 and Xiaomi SU7 Ultra: the entire Xiaomi YU7 series can enjoy &#34;3 years 0 interest,&#34; with a down payment starting at 74,900 yuan and monthly payments starting at 4,961 yuan. Meanwhile, Xiaomi stated that customers who place an order for the YU7 before the end of February can enjoy a limited-time purchase benefit of 48,000 yuan.
In the traditional car manufacturer sector, BMW has initiated a wide-ranging official price adjustment for 31 models, covering flagship and entry-level models. The BMW iX1, which has the highest price reduction, sees its official guide price drop from 299,900 yuan to 228,000 yuan, a decrease of 24%. BMW stated that this aims to enhance brand affinity and market competitiveness by lowering the purchase threshold.
Volvo Cars announced a limited-time promotional activity for its new XC70 model to respond to the adjustment of the 2026 new energy vehicle purchase tax policy, mainly including a direct subsidy of 14,000 yuan for purchase tax, as well as supporting rights covering purchase and usage.
Wuling Motors announced full purchase tax subsidies for several of its new energy models, along with up to 8,000 yuan in trade-in subsidies and up to 5,000 yuan in limited-time financial interest subsidies.
Additionally, traditional car manufacturers such as Dongfeng, Chery, Deep Blue, FAW-Volkswagen, and GAC Toyota have also successively launched New Year price reduction promotions for some of their brands or models.
Industry insiders generally believe that car manufacturers are ramping up discounts at the beginning of the year mainly to offset the impact of the increased purchase tax on new energy vehicles.
According to the current new energy vehicle purchase tax exemption policy, the purchase tax for new energy vehicles will be halved in 2026 and 2027, with the exempted tax amount not exceeding 15,000 yuan. Taking the Tesla Model Y as an example, consumers purchasing the lowest configuration Model Y after January 1, 2026, will need to spend approximately 11,600 yuan more compared to 2025
By the end of 2025, influenced by the adjustment of the new energy vehicle purchase tax policy and the exit of the &#34;national subsidy&#34; in 2025, institutions generally hold a cautious attitude, predicting that the automotive market may decline in 2026. Many automotive company executives also predict a significant decline in the first quarter of this year.
However, with the earlier-than-expected introduction of subsidies for vehicle scrapping and replacement, the industry outlook has shifted to a more optimistic tone. Coupled with substantial discounts and promotions from car manufacturers, the Chinese automotive market is expected to continue its growth trend in 2026.
The China Automobile Dealers Association released a forecast on the 5th, stating that the automotive market in January 2026 will present a &#34;good start.&#34; The association analyzed that the demand for replacing old vehicles with new ones, which was suppressed by the exhaustion of local subsidies at the end of 2025, combined with the pre-holiday purchasing demand generated by the 2026 Spring Festival, will jointly boost the purchasing demand in January 2026, with expected market demand higher than that in December 2025.
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Multiple car manufacturers are launching price reduction promotions in the first month of the New Year 2026. Tesla China is offering a "7-year ultra-low interest" car purchase plan for Model 3/Y/Y L, and GAC Group has also introduced purchase tax subsidies and other discounts. Brands such as Nio, BMW, and Volvo have successively released promotional policies, with BMW reducing prices on 31 models, with discounts of up to 24%. WULING MOTORS is providing full purchase tax subsidies, and traditional car manufacturers like Dongfeng and Chery are also participating in the price reduction promotions. The industry generally believes that these measures aim to enhance market competitiveness

- On January 6, Tesla China announced purchase incentives for the Model 3 and Y, including a "7-year ultra-low interest" financing plan with down payments starting at 79,900 yuan and monthly payments from 1,918 yuan.  
- Following this, GAC Group introduced discounts on its self-owned brands, including tax policies and subsidies, while several automakers launched promotions for January 2026 to counteract the upcoming tax hikes on electric vehicles.  
- Industry experts suggest that despite initial pessimism regarding the 2026 automotive market, growing consumer demand and manufacturers' incentives may lead to an optimistic outlook for sales at the beginning of the year.

Multiple car companies are intensively cutting prices for promotions