# consumer credit

Price War Fades, Financing Mayhem Begins: How China’s Carmakers Are Competing with 7‑Year Loans

China’s auto makers have shifted from price cuts to long‑tenor, low‑interest financing as regulators clamp down on direct price wars and fiscal policy subsidises consumer loans. The tactic reduces monthly payments and attracts young buyers, but it also locks consumers into long contracts on rapidly depreciating electric vehicles and concentrates advantages with well‑capitalised firms.