Li Auto ships 30,731 vehicles in July, representing a 40% decrease compared to the same period last year.
Li Auto, a prominent player in China's electric vehicle market, has faced a setback with two consecutive months of year-on-year decline in monthly deliveries. The company, which operates 535 retail stores in 153 cities, launched its first all-electric SUV, the Li i8, on July 29, 2022, with deliveries scheduled to begin on August 20.
The Li i8 marks Li Auto's deeper entry into the red-hot battery electric vehicle (BEV) market, joining competitors such as Tesla. However, the company's year-to-date deliveries for the first seven months of 2022 are below the same period last year, with a total of 234,669 vehicles delivered, representing a year-on-year decrease of 2.21 percent.
The decline in deliveries can primarily be attributed to significant drops in Li Auto's L-series extended-range electric vehicles (EREVs), which fell between 40% and 53% year-on-year in July 2022. The Li L6, the company's most affordable model and largest contributor to deliveries, saw its monthly sales decrease by about 40% year-on-year and nearly 10% month-over-month in July. As a result, overall vehicle deliveries dropped 15.29% month-over-month from June and 40% year-on-year in July.
Despite these declines, Li Auto still delivered 30,731 vehicles in July 2022, marking a substantial monthly total and cumulative deliveries surpassing 1,368,541 vehicles as of July 31, 2022. The company also operates 3,028 supercharging stations in China, equipped with 16,671 charging stalls.
The impact of these declines is multifaceted. On one hand, the weakening sales in the core L-series put pressure on Li Auto’s short-term growth and indicate challenges in its traditional product segment. On the other hand, the strong surge in Li Mega MPV deliveries and the strategic launch of the Li i8 battery electric SUV demonstrate the company’s efforts to diversify its portfolio and counterbalance the slowdown.
The new Li i8 aims to expand Li Auto’s market presence but has faced a muted initial reception and social media backlash, complicating its launch. However, the company's infrastructure, expanding product lineup, and cumulative sales achievements help maintain its competitive position in China’s electric vehicle market.
As Li Auto moves forward, continued success will depend on how well the new models like the Li i8 can offset the downturn in established offerings and respond to market challenges. The company's stock (NASDAQ: LI) is currently trading at RMB 321,800 ($44,610) for the Li i8.
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- Li Auto, a significant player in China's electric vehicle market, has experienced a decrease in monthly deliveries for two consecutive months, largely due to drops in their L-series extended-range electric vehicles.
- The company, which competes with industry giants like Tesla, launched its first all-electric SUV, the Li i8, on July 29, 2022, with deliveries scheduled to begin on August 20.
- The Li i8 is designed to broaden Li Auto’s market presence, but its initial reception has been subdued, sparking criticism on social media, potentially complicating its launch.
- Despite the decreases in deliveries, Li Auto still managed to deliver 30,731 vehicles in July 2022, boosting their total cumulative deliveries to over 1,368,541 vehicles.
- The company operates 3,028 supercharging stations in China, equipping them with 16,671 charging stalls, providing an essential infrastructure for their EVs.
- Li Auto's long-term success hinges on how effectively the new models like the Li i8 can offset the downturn in established offerings and navigate market challenges, as reflected by its current stock trading at RMB 321,800 ($44,610) for the Li i8 on the NASDAQ exchange (LI).
