Delivery figures for Li Auto's electric vehicles indicate a drop across all models, while the Mega series remains on an upward trajectory.
In a recent report, Li Auto, a leading Chinese electric vehicle manufacturer, announced its July deliveries. The company delivered a total of 30,731 vehicles, marking a year-on-year decrease of 39.74% and a month-on-month decrease of 15.29%.
The decline in July deliveries for Li Auto’s L-series extended-range electric vehicles (EREVs) was primarily due to intensified competition in the budget extended-range SUV market and weakening consumer demand for these models. The L-series (L6, L7, L8, L9) experienced year-on-year delivery declines of 40% to 53%, with the most affordable L6 dropping over 40% compared to last year. This decline reflects growing market saturation and the loss of the L-series' unique selling points, such as extended-range technology and luxury features, which have been widely copied by competitors offering similar vehicles at lower prices.
In contrast, the Li Mega MPV saw significant growth, rising 330% year-on-year in deliveries, reaching its second-highest monthly sales total. This growth occurred despite the Li Mega being Li Auto’s most expensive model, suggesting strong demand for upscale multi-purpose vehicles. The rise of the Li Mega also benefited from the market’s shifting preference towards more premium and electric MPV segments. Li Auto is expanding its all-electric offerings with new models like the Li i8 SUV, launched at the end of July, which could help boost overall deliveries going forward.
The Li L6, the best-selling Li Auto model in July, delivered 14,830 vehicles, accounting for 48.26% of Li Auto's July deliveries. However, its monthly sales decreased by 40.34% year-on-year and 9.96% from June. The Li L7, which delivered 6,237 vehicles in July, saw a year-on-year decrease of 45.30% and a 24.61% drop from June. The Li L9 delivered 3,760 units in July, a year-on-year decrease of 49.83% and a month-on-month decrease of 23.16%. The Li L8 delivered 3,088 units in July, down 53.16% year-on-year and 28.82% month-on-month.
The launch challenges of the new Li i8 electric SUV and its planned relaunch with price cuts also indicate Li Auto’s strategic push to balance its product portfolio amid shifts in consumer preference. On June 3, Li Auto had expected stable deliveries of the Li Mega to reach 2,500-3,000 units per month. However, the Li Mega's deliveries surpassed these expectations, reaching 4,185 units in June and 5,546 units in July, marking a 330.58% year-on-year increase in July.
In the first seven months of the year, the Li L6 delivered 111,184 vehicles, accounting for 47.38% of Li Auto's total deliveries. During the same period, the Li L7 delivered 53,611 vehicles, and the Li L9 delivered 30,398 units. The Li Mega delivered 8,621 units in the first seven months, contributing 3.67% of Li Auto's deliveries during the same period. The deliveries of the updated L series began on May 9, and deliveries of the updated Li Mega began on May 23.
In summary, the decline in Li Auto’s L-series EREVs is due to intensified competition and weakening consumer demand, while the Li Mega MPV's growth is due to strong demand for premium, all-electric MPVs and the market's shifting preference towards electric MPVs. Li Auto is expanding its all-electric offerings with new models like the Li i8 SUV, which could help boost overall deliveries going forward.
- Despite the decline in deliveries for Li Auto's L-series electric vehicles, the Li Mega MPV observed significant growth, recording a year-on-year increase of 330% and reaching its second-highest monthly sales total in July.
- Li Auto, a leading Chinese EV manufacturer, announced that the Li Mega MPV accounted for the majority of its industry-related finance gains, despite being the company's most expensive model.
- In the Chinese automotive industry, Li Auto's rivals are taking advantage of market saturation by offering similar extended-range vehicles at lower prices, challenging Li Auto's L-series sales.
- Li Auto is keen on technological advancements, planning to boost deliveries with its all-electric offerings like the Li i8 SUV, which was launched at the end of July.
- By expanding its electric vehicle lineup and focusing on growing segments within the transportation industry, such as the Li Mega MPV and upcoming models like the Li i8, Li Auto aims to regain its competitive edge in the Chinese market.
