Xiaomi Auto Clarifies Compliance of 7-Year Low-Interest Financing Plan

[Financial Compliance] Xiaomi Auto responded to online rumors alleging a "lease-to-own financing scheme" as unfounded.

Key Development: 7-Year Low-Interest Plan Offered by Licensed Institutions

Xiaomi Auto explicitly stated that its 7-year low-interest auto financing plan is provided in partnership with Shanghai Pudong Development Bank, China CITIC Bank, Bank of Ningbo, and Shanghai Xiaomi Financial Leasing Co., Ltd.—all of which are officially regulated and licensed institutions. Taking the YU7 model as an example, the annual percentage rate (APR) is as low as 1.33% (equivalent to an interest rate of approximately 2.55%), with monthly payments starting from RMB 1,999.

Industry Impact: Clarifying the Boundary Between "Loans" and "Financial Leasing"

Recently, multiple automakers have introduced 7-year financing plans, some of which were revealed to be financial leasing arrangements, causing consumer confusion. Xiaomi emphasized that its plan is fully compliant with regulations and transparent in fees, and denied any misleading practices such as "disguising leases as loans," aiming to protect consumers’ right to informed decision-making and choice.