Li Auto Bets on L8, L6 EVs to Revive Sales after Weak July Data
Chinese electric vehicle (EV) manufacturer Li Auto has announced plans to deliver over 10,000 units of its Li L8 SUV by China’s October 1-8 National Day holiday, with the first units arriving on August 20. The move comes as a bid to revive sales, which saw a significant decline in July. The company is banking on the L8 and its upcoming L6 SUV to drive growth, and retail sentiment remains bullish.
The Li L8, priced at 321,800 yuan, is an upgraded version of the company’s previous L7 model. Despite its muted debut, the SUV’s relaunch is expected to give Li Auto a much-needed boost. The company’s July deliveries fell 39.7% year-over-year (YoY), a significant decline from the 12,464 units delivered in July 2022.
However, Li Auto is optimistic about the L8’s potential to revive sales. The company has set a goal to deliver over 10,000 units of the L8 by the end of September, with a significant push expected during the National Day holiday. The L8’s aggressive pricing strategy, which is lower than its predecessor, is also expected to attract more customers.
The Li L6, which is expected to be launched in the coming months, is another key factor in Li Auto’s plans to revive sales. The L6 is a more affordable option, priced at around 250,000 yuan, making it an attractive option for budget-conscious consumers. The company has not revealed the exact launch date for the L6, but it is expected to hit the market soon.
Li Auto’s woes are not unique to the company. The Chinese EV market has been experiencing a slowdown in recent months, driven by factors such as China’s ongoing COVID-19 pandemic, economic uncertainty, and increased competition. Many EV manufacturers, including Li Auto’s rivals, have also reported declines in sales.
However, despite the challenging market conditions, Li Auto remains confident in its ability to drive growth. The company’s retail sentiment remains bullish, with many investors and analysts optimistic about the company’s prospects. Li Auto’s focus on delivering high-quality products, its strong brand reputation, and its aggressive pricing strategy are all expected to contribute to its growth.
In addition to the L8 and L6, Li Auto has also been focusing on expanding its sales network and improving its after-sales service. The company has been investing heavily in its retail channels, with plans to increase its sales network to over 300 locations by the end of the year.
Li Auto’s efforts to revive sales are also expected to be supported by the Chinese government’s ongoing initiatives to promote the development of the EV industry. The government has been providing incentives, such as subsidies and tax breaks, to encourage the adoption of EVs. These initiatives are expected to drive growth in the industry, with Li Auto poised to benefit from the trend.
In conclusion, Li Auto’s plan to deliver over 10,000 units of the Li L8 by the end of September is a significant step in the company’s efforts to revive sales. The company’s focus on delivering high-quality products, its strong brand reputation, and its aggressive pricing strategy are all expected to contribute to its growth. While the Chinese EV market remains challenging, Li Auto is well-positioned to capitalize on the trend, and retail sentiment remains bullish.
