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 the end of September, with a significant push during the upcoming National Day holiday in China. The move comes as the company seeks to revive its sales growth, which has been slowed by a 39.7% year-over-year (YoY) decline in July deliveries.
Li Auto’s L8 SUV has been re-launched in China with a price tag of 321,800 yuan, following a muted debut and online smear allegations. Despite the challenges, the company remains optimistic about the model’s prospects, with retail sentiment remaining bullish.
To achieve its delivery goal, Li Auto will start shipping the first units of the L8 SUV on August 20, with the majority of deliveries expected to take place during the National Day holiday from October 1-8. The company has also announced plans to provide incentives to customers who purchase the L8 during this period, including a 5,000 yuan discount and a free charging package.
Li Auto’s L6 SUV, which is expected to be launched soon, is also expected to play a key role in the company’s sales revival efforts. The L6 is a compact SUV that is designed to appeal to a wider range of customers, including those in smaller cities and rural areas.
Li Auto’s decision to focus on the L8 and L6 SUVs comes as the company seeks to diversify its product lineup and appeal to a broader range of customers. The company has previously focused on the mid-to-high-end market, but is now looking to expand its presence in the lower-end market.
The company’s efforts to revive its sales growth are also expected to be boosted by the Chinese government’s continued support for the EV industry. The government has set a target of having 50% of all new car sales in China to be electric by 2025, and has announced plans to increase its investment in the EV sector.
In addition to its efforts to revive its sales growth, Li Auto is also focusing on improving its manufacturing efficiency and reducing its costs. The company has announced plans to invest in new production lines and equipment, and is expected to reduce its costs by around 10% this year.
Li Auto’s competitors in the Chinese EV market, such as NIO and XPeng, are also facing challenges in the current market environment. However, both companies have reported strong sales growth in recent months, and are expected to continue to be major players in the market.
In conclusion, Li Auto’s plans to deliver over 10,000 units of the L8 SUV by the end of September, and its focus on the L6 SUV, are expected to play a key role in the company’s efforts to revive its sales growth. The company’s decision to diversify its product lineup and focus on the lower-end market is also expected to help it to appeal to a wider range of customers. With the Chinese government’s continued support for the EV industry, and the company’s efforts to improve its manufacturing efficiency and reduce its costs, Li Auto is well-positioned to continue to be a major player in the Chinese EV market.
