Li Auto Bets on L8, L6 EVs to Revive Sales After Weak July Data
China’s electric vehicle (EV) market has been on a roll in recent years, with numerous players vying for a share of the growing pie. Among these, Li Auto has been a significant player, known for its innovative approach to EV technology. However, the company’s sales figures for July 2022 were a cause for concern, with a significant decline in deliveries. In response, Li Auto is banking on its upcoming L8 and L6 EVs to revive growth and get its sales back on track.
July Deliveries Fall 39.7% YoY
According to recent reports, Li Auto’s July deliveries fell a staggering 39.7% year-over-year (YoY), which is a significant decline. This drop in sales is likely to have raised concerns among investors and analysts, who will be closely monitoring the company’s performance in the coming months.
L8 and L6 EVs: The Key to Revival?
To address the sales slump, Li Auto is focusing on its upcoming L8 and L6 EVs, which are expected to drive growth in the coming quarters. The L8, in particular, is a highly anticipated SUV that is priced at 321,800 yuan. The vehicle is set to hit the market on August 20, with the company planning to deliver over 10,000 units by China’s October 1-8 National Day holiday.
The L8 is a significant update to Li Auto’s existing L7 SUV, which debuted in January 2022. While the L7 received a lukewarm response, the L8 is expected to fare better, thanks to its improved design, range, and features. The vehicle will be available in two variants: a standard version and a premium edition, which will offer additional features such as a panoramic sunroof and a 12.3-inch touchscreen display.
Retail Sentiment Remains Bullish
Despite the weak sales figures, retail sentiment around Li Auto remains bullish. Analysts believe that the company’s L8 and L6 EVs have the potential to drive growth and improve the company’s market share. Moreover, the National Day holiday, which is expected to boost car sales in China, could provide a much-needed boost to Li Auto’s sales.
Li Auto’s CEO, Li Xiang, has expressed confidence in the company’s ability to deliver strong results, stating that the company is “confident in its product lineup and marketing strategies.” The CEO also emphasized the importance of the National Day holiday, stating that it will be a “key test” for the company’s sales momentum.
Retailers are also optimistic about Li Auto’s prospects, with many expecting the company to bounce back from its recent slump. A report by CMB International Securities noted that Li Auto’s L8 and L6 EVs will be “key growth drivers” for the company, while also highlighting the importance of the National Day holiday.
Conclusion
Li Auto’s recent sales slump has raised concerns among investors and analysts, but the company is banking on its upcoming L8 and L6 EVs to revive growth. The L8, in particular, is expected to drive sales, thanks to its improved design, range, and features. Retail sentiment remains bullish, with many expecting Li Auto to bounce back from its recent slump.
As the company prepares to deliver over 10,000 L8 EVs by the end of September, investors will be closely monitoring its performance. With the National Day holiday expected to boost car sales in China, Li Auto’s sales figures for the coming months will be crucial in determining the company’s future prospects.
