- Li Auto targets a 20% sales increase in 2026, seeking to recover from an 18.8% drop in 2025 deliveries.
- Li Auto barely eked out a net profit in the fourth quarter as it revamps its sales network and rolls out new models to fend off competition.
Li Auto set a target of 20% year-on-year sales growth for 2026, as the Chinese automaker attempts to reverse last year's sales slump.
The company's founder, chairman and CEO Li Xiang announced the target during an earnings call on Thursday, emphasizing that new strategies will help the company resume growth.
The growth target comes after a difficult 2025 for the company, which is facing increasingly severe market challenges.
Li Auto's total deliveries for the full year of 2025 stood at 406,343 vehicles, down 18.81% compared with 2024.
The 20% growth target implies the company is aiming to deliver about 490,000 vehicles in 2026.
To achieve this, Li Auto's management formulated a new "3+2" growth strategy aimed at boosting overall operational efficiency.
The core of the strategy involves optimizing sales network management, ensuring the successful transition to the next-generation flagship extended-range sport utility vehicle (SUV) Li L9, and driving steady sales growth for its battery electric models.
A complete overhaul of the sales network is viewed as one of the company's most urgent tasks, with Li Auto rethinking its direct-sales model.
To incentivize sales teams and improve per-store output, the company officially launched a new "store partner" program in March.
On the product front, Li Auto plans to officially launch the new Li L9 series in the second quarter, aiming to reclaim its leading position in the flagship SUV market.
The new model will come standard with an 800-volt high-voltage platform and 5C supercharging technology, while its Livis trim, featuring embodied AI technology, is priced at RMB 559,800.
The market performance of its battery electric vehicles is crucial to Li Auto's future overall sales growth, and the company is working to resolve supply chain and production ramp-up issues.
Management plans to launch a new flagship electric SUV, the Li i9, in the second half of 2026 to further expand its product lineup and meet diverse consumer needs.
Despite the aggressive sales growth plan, the automaker's financial health remains under pressure, with profitability severely eroded by price wars.
Li Auto barely eked out a net profit of RMB 20.2 million in the fourth quarter of 2025, while still recording an operating loss of RMB 442.6 million for the period.
Total revenue for the fourth quarter stood at RMB 28.8 billion, a sharp 35.0% decline from the same period in 2024, reflecting sluggish overall market demand.
Its vehicle margin for the fourth quarter was 16.8%, significantly lower than the 19.7% recorded in the same period of 2024, as new model launches and promotional campaigns dragged down the average selling price.
Li Auto's sustained investment in artificial intelligence is viewed as a key driver for future growth, with the company's research and development spending reaching RMB 11.3 billion in 2025.
About half of the R&D budget was dedicated to AI-related technology development, as the company hopes to significantly boost decision-making efficiency by introducing AI agents.
The year 2026 will also mark Li Auto's official entry into overseas markets, an expansion the company views as an opportunity to hedge against fierce domestic competition and secure long-term growth.
