Li Auto Deliveries Plunge 41% Amid Rising Competition
The Chinese EV maker reported its third straight month of year-over-year declines, delivering 28,529 vehicles in August.
Li Auto Inc. (NASDAQ: LI) announced a significant drop in its monthly vehicle deliveries, raising concerns about its performance in China's increasingly competitive electric vehicle market. The company , a staggering 40.72% decrease compared to the same period last year.
The sharp downturn marks the company's , a troubling trend that stands in contrast to record-high figures reported by several major peers. The August results also represent a 7.17% decrease from the previous month. Year-to-date, Li Auto's deliveries stand at 263,198 vehicles, down 8.64% from the prior year.
In response to the slowing momentum, the company is pinning its hopes on new models to reinvigorate sales. Li Auto confirmed it will launch the Li i6, a new battery electric SUV, in September, with an anticipated price range between RMB 250,000 and RMB 300,000. This follows the recent relaunch of its first pure-electric SUV, the Li i8, which was repriced in August after a disappointing initial reception.
Li Xiang, the company's founder and CEO, has set ambitious targets for the new lineup. The company is aiming for stable monthly deliveries of 9,000 to 10,000 units for the Li i6 and 6,000 units for the Li i8 by the end of the year. Combined with its Li Mega model, which surpassed 3,000 deliveries in August, Li Auto is targeting 18,000-20,000 total monthly BEV sales.
Despite the sales slump, the company continues to expand its physical footprint. As of August 31, Li Auto operates an extensive network of across China, supported by 3,190 supercharging stations. Investors will be closely watching whether the upcoming launch of the Li i6 can successfully reverse the current downward trend and help the company regain its footing against a backdrop of fierce domestic competition.