<div id="readability-page-1"><blockquote><ul><li>Xiaomi has introduced a 7-year low-interest financing incentive for all variants of the YU7, responding to Tesla's move earlier this month.</li><li>The Xiaomi YU7 starts at RMB 253,500 ($35,390), undercutting the Model Y's RMB 263,500 base price.</li></ul></blockquote><figure id="attachment_135344"><img src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/01/2026011513034476.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1600" height="900" original-src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/01/2026011513034476.jpg"/><figcaption id="caption-attachment-135344">(Xiaomi YU7. Image credit: Xiaomi EV)</figcaption></figure>Xiaomi (HKG: 1810, OTCMKTS: XIACY) has followed Tesla's (NASDAQ: TSLA) move in offering ultra-long-term low-interest financing for its popular SUV (sport utility vehicle) model amid intensifying competition.The company's founder, chairman, and CEO Lei Jun announced during a livestream on Thursday that a 7-year low-interest financing incentive is available for all YU7 variants, representing an urgent response to Tesla's move.Chinese customers ordering the YU7 between January 16 and February 28 can purchase the SUV with a down payment as low as RMB 49,900 ($7,160), resulting in monthly installments starting at RMB 2,593. <div> Join us on Telegram or Google News </div><img src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/01/2026011513033719.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1200" height="1600" original-src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/01/2026011513033719.jpg"/>On June 26, 2025, Xiaomi officially launched the YU7, its first electric SUV and the most direct competitor to Tesla's Model Y.The model starts at RMB 253,500, undercutting the Model Y's RMB 263,500 base price.The YU7 delivered a record 39,089 units in December, bringing its 2025 total to 153,673 units, according to data compiled by CnEVPost. <div> Xiaomi YU7 monthly deliveries 2025 </div> However, the Xiaomi model — along with broader Chinese domestic SUVs — faces intensifying competition from Tesla's Model Y.On January 6, amid sluggish early-year market in China, Tesla announced ultra-low-interest financing for up to seven years for Chinese customers purchasing Model 3, Model Y, or Model Y L by January 31.This makes Tesla the first automaker to offer such an extended-term financing plan in China. Compared to the standard 2.50% annualized rate, consumers can save up to RMB 33,479.Chinese customers can purchase a Model 3 or five-seat Model Y with a down payment of RMB 79,900, resulting in monthly payments as low as RMB 1,918 and RMB 2,263 respectively. For the six-seat Model Y L, the minimum down payment is RMB 99,900 with monthly payments as low as RMB 2,947.In December, Model Y retail sales in China reached a record 65,874 units, bringing the full-year 2025 total to 425,337 units. <div> Tesla Model Y monthly sales in China 2023 2024 2025 </div> ($1 = RMB 6.9672) </div>

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Xiaomi has launched a 7-year low-interest financing plan for its YU7 electric SUV, mirroring Tesla's recent offer. The YU7 starts at RMB 253,500 ($35,390), undercutting the Model Y's price of RMB 263,500. Customers can make a down payment of RMB 49,900 ($7,160) and enjoy monthly payments starting at RMB 2,593. This move comes amid increasing competition in the electric vehicle market, as Tesla also introduced similar financing options for its models earlier this month.

- Xiaomi has launched a 7-year low-interest financing incentive for its YU7 electric SUV, starting at RMB 253,500, to compete with Tesla's Model Y priced at RMB 263,500.  
- The financing offer allows Chinese customers to begin with a down payment of RMB 49,900 and monthly installments starting at RMB 2,593 for orders placed between January 16 and February 28.  
- In December 2025, the YU7 achieved record sales of 39,089 units, amid stiff competition where Tesla's Model Y sold 65,874 units in the same month.

Xiaomi follows Tesla in offering 7-year low-interest financing for its Model Y rival YU7