- In the first five months of this year, Li Auto's total deliveries stood at 162,577 vehicles, down 3.03% year-on-year.
- Li Auto will launch the all-new Li L8 in late June, changing it from a six-seat to a five-seat layout, as it continues to advance the update of its L-series models.
Li Auto (NASDAQ: LI) suffered a double-digit year-on-year decline in vehicle deliveries in May, as the Chinese electric vehicle (EV) maker attempts to navigate fierce domestic market competition through model updates.
The company delivered 33,350 vehicles in May, down 18.37% from a year earlier and representing a slight 2.16% drop compared to April, according to data it released on Monday.
In the first five months of the year, Li Auto delivered a cumulative 162,577 vehicles, a year-on-year decrease of 3.03%.
As of May 31, the company's historical cumulative deliveries reached 1,702,792 vehicles.
Despite the pressure on overall deliveries, the performance of some models remained robust. Since March this year, monthly deliveries of the Li i6 pure electric SUV have exceeded 20,000 units for three consecutive months, according to the company.
To revive sales momentum, Li Auto officially launched and commenced deliveries of the updated flagship Li L9 in May, marking the beginning of the product update cycle for its L-series extended-range SUVs.
The initial market response to the model update appeared positive. The high-end Livis version of the all-new Li L9 garnered over 10,000 firm orders within just two weeks of its launch, Li Auto said.
Following in the footsteps of the Li L9, Li Auto plans to officially launch the all-new five-seat flagship SUV Li L8 in late June. This updated model will undergo a major product positioning adjustment.
The all-new Li L8 will abandon the current six-seat design and pivot to focus on the premium five-seat market. The move is aimed at avoiding internal cannibalization with the larger flagship Li L9, which also features a six-seat layout.
The updated Li L8 will feature larger dimensions and a higher-capacity battery pack. This increase in size provides significantly optimized rear passenger space for the new five-seat layout, thereby enhancing the overall experience.
Ahead of the new model's launch, Li Auto will also host a dedicated technology event in June. The company plans to showcase its latest capabilities in areas including in-cabin interaction, foundation models, assisted driving, and in-house developed chips.
The intensive model launches come as the company faces severe financial pressure. In the first quarter of this year, Li Auto unexpectedly recorded a net loss of 2.3 billion yuan ($340 million), ending its previous streak of profitability.
The sharp deterioration in profitability was primarily attributed to a fierce market price war. Li Auto's gross margin in the first quarter plunged to 7.9% from 20.5% a year earlier, reflecting a significant decline in average selling prices.
The company's outlook for the second quarter also appeared relatively conservative. Li Auto expects vehicle deliveries in the second quarter to be between 95,000 and 100,000 units, lagging behind the guidance of local rivals Nio Inc (NYSE: NIO) and Xpeng (NYSE: XPEV).
In search of new growth engines, Li Auto is accelerating its pace of global expansion. The company plans to introduce the Li i6 pure electric SUV to the European market in the second half of this year.
For the right-hand drive vehicle market, the right-hand drive version of the Li Mega will be launched in Hong Kong and Singapore by the end of the year. Meanwhile, an international-exclusive version of the all-new Li L9 is scheduled to land in markets such as the Middle East and Central Asia in the third quarter.
On the infrastructure front, as of the end of May, Li Auto operated 498 retail stores and 4,088 super charging stations in China. The company is attempting to support its long-term sales recovery through a comprehensive service network.
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