Li Auto Bets on L8, L6 EVs to Revive Sales After Weak July Data
Chinese electric vehicle (EV) maker Li Auto has set its sights on reviving sales with the relaunch of its Li L8 SUV and the upcoming L6 model. The company aims to deliver over 10,000 Li L8 EVs by China’s October 1-8 National Day holiday, with the first units arriving on August 20. Priced at 321,800 yuan, the SUV’s relaunch follows a muted debut and online smear allegations.
In a bid to boost sales, Li Auto has also set a target of delivering over 10,000 units of the Li L8 by the end of September. The company is relying on the L8 and L6 models to drive growth, as its July deliveries fell 39.7% year-over-year (YoY). Despite this decline, retail sentiment remains bullish, with many investors expecting a turnaround in the second half of the year.
The Li L8, a mid-range SUV, was initially launched in March but failed to generate significant buzz due to a lack of marketing and online smear campaigns. However, Li Auto is confident that the relaunch will pay off, thanks to its improved marketing strategy and enhanced product features. The SUV’s price has been reduced by 10,000 yuan from its initial launch price, making it a more attractive option for budget-conscious consumers.
The Li L6, on the other hand, is a compact SUV that is expected to be launched in the fourth quarter of this year. The company has been tight-lipped about the model’s specifications and pricing, but sources indicate that it will be a more affordable option than the L8. The L6 is likely to target first-time car buyers and young professionals, who are increasingly turning to EVs for their eco-friendly and cost-effective nature.
Li Auto’s decision to focus on the L8 and L6 models is a strategic one, as it aims to capitalize on the growing demand for EVs in China. The company has been investing heavily in research and development, with a focus on improving the range, performance, and design of its vehicles. In addition, Li Auto has been expanding its sales network, with plans to open over 100 new stores by the end of the year.
Despite the challenges faced by Li Auto in recent months, retail sentiment remains bullish. Many investors believe that the company’s new models will help it regain momentum, driven by the growing demand for EVs and the government’s supportive policies. The Chinese government has been actively promoting the adoption of EVs, with plans to increase the share of new energy vehicles in the country’s auto market to 20% by 2025.
Li Auto’s competitors, such as XPeng and NIO, have also been experiencing a slowdown in sales growth in recent months. However, they have been working to revamp their product lines and marketing strategies to stay competitive. XPeng, for example, has been focusing on the development of its P5 sedan, which is expected to be launched later this year. NIO, on the other hand, has been expanding its sales network and introducing new features to its vehicles.
In conclusion, Li Auto’s decision to focus on the L8 and L6 models is a strategic one, as it aims to capitalize on the growing demand for EVs in China. The company’s new models are expected to drive growth, as it targets first-time car buyers and young professionals who are increasingly turning to EVs for their eco-friendly and cost-effective nature. While the company’s July deliveries fell 39.7% YoY, retail sentiment remains bullish, with many investors expecting a turnaround in the second half of the year.
