Summary
– Li Auto saw deliveries rebound in May to a new high for the year
– May deliveries were the highest single-month volume for Li Auto this year
– The company’s cumulative deliveries since inception stood at 774,571 vehicles
– Li Auto lowered its 2024 sales forecast on March 22, facing challenges to reach its target
– Li Auto has high hopes for the Li L6 SUV model and implemented a new pricing strategy across its lineup in April
Article
Li Auto experienced a rebound in its deliveries in May, with a total of 35,020 vehicles delivered, marking the highest single-month volume for the year. This figure was a 35.8 percent increase from April and a 23.85 percent increase year-on-year. However, it still fell short of the record set in December 2023, when the company delivered 50,353 vehicles. Despite this, Li Auto has seen a 32.54 percent year-on-year increase in deliveries so far this year, with a total of 141,207 vehicles delivered. The company’s cumulative deliveries since its inception now stand at 774,571 vehicles.
The weak performance at the start of the year poses challenges for Li Auto in achieving its 2024 delivery target. The company previously lowered its 2024 sales forecast to 560,000-640,000 vehicles from the original 650,000-800,000. This revised target represents a 50 to 70 percent year-on-year increase, considering that Li Auto delivered 376,030 vehicles in 2023. The company is a major player in the extended-range electric vehicle market in China, with models such as the Li L6, Li L7, Li L8, and Li L9. Li Auto recently launched its first battery electric vehicle model, the Li Mega MPV, and updated its L-series EREVs for 2024.
Li Auto management had initially set high expectations for the Li Mega MPV, aiming to challenge monthly sales of 8,000 units. However, the model’s acceptance fell short of expectations, leading to a downward revision of full-year delivery expectations. The company announced that it would not release an all-electric SUV model this year, with plans to launch them in the first half of next year instead. For now, Li Auto is focusing on the Li L6, which has seen strong demand since its launch in April. The company has delivered more than 15,000 Li L6s, setting a record delivery pace for newly launched models.
To further drive sales, Li Auto implemented a significant price reduction across its entire model lineup, except for the Li L6. This pricing strategy has helped boost sales of the 2024 Li L7, Li L8, and Li L9 models. The company continues to expand its retail presence, with 487 retail stores in 144 cities, as well as servicing centers and supercharging stations across China. Despite some challenges, Li Auto remains committed to ramping up production and securing the supply chain to meet the growing demand for its vehicles. The company’s founder, chairman, and CEO, Li Xiang, emphasized the importance of ensuring customers receive their vehicles at the earliest opportunity.
Overall, Li Auto’s performance in May may have shown signs of improvement, but challenges remain as the company works towards its 2024 delivery targets. With a focus on expanding its model lineup and optimizing its pricing strategy, Li Auto aims to maintain its position as a key player in the Chinese electric vehicle market. As the company continues to grow and innovate, it will be interesting to see how it navigates the evolving landscape of the electric vehicle industry and addresses the changing demands of consumers.
Read the full article here
