- Li Auto will adjust its product lineup in the RMB 300,000 ($42,910) to RMB 400,000 price segment, focusing on streamlining the number of model variants.
- It sold 360,000 vehicles in the first 11 months of this year, only half of its initial annual target.
Li Auto (NASDAQ: LI, HKG: 2015) is preparing a major product realignment to enhance competitiveness and reduce cannibalization among different models, local media outlet LatePost reported today.
The move aims to address current challenges, as the company sold 360,000 vehicles in the first 11 months of this year -- only half of its initial annual target, the report noted.
Li Auto's pure-electric SUV (sport utility vehicle) Li i8 will remain and continue to be iterated, with no plans for discontinuation, the report cited multiple independent sources as saying.
For its extended-range electric vehicle (EREV) models, the company will focus on adjusting products in the RMB 300,000 ($42,910) to RMB 400,000 price range, concentrating on streamlining variant offerings to improve average vehicle efficiency, the report said.
Li Auto may also introduce a premium model priced above RMB 500,000, the report said.
The company's upcoming product strategy involves enhancing the luxury appeal of its flagship models while minimizing internal competition between battery electric vehicle (BEV) models and similarly priced EREVs.
Distinctions between its RMB 300,000 to RMB 400,000 models will become more pronounced, the report said.
Li Auto experienced a significant sales decline in 2025, delivering 33,181 vehicles in November -- a 31.92 percent year-on-year drop marking its sixth consecutive month of decline.
From January to November, Li Auto delivered 362,097 vehicles, down 18.08 percent year-on-year.
The Li i8 was launched on July 29 as Li Auto's second BEV model following the Li Mega MPV (multi-purpose vehicle).
However, the pure-electric SUV has seen lukewarm performance since its launch. Li Auto relaunched the Li i8 on August 5, reducing available configurations from three to one and lowering its price.
Meanwhile, the Li Mega, which had shown significant sales improvement in the second half of the year, has once again fallen into sluggish sales due to a fire incident in late October and a subsequent recall.
During the third quarter earnings call on November 26, Li Auto president Ma Donghui said the company will streamline SKUs (stock keeping units) for its L-series EREVs in 2026, balancing market coverage with supply chain efficiency.
($1 = RMB 6.9922)
