Li Auto sells 30,731 vehicles in July, marking a 40% decrease compared to the same period last year
In a recent development, Li Auto, a prominent player in China's electric vehicle (EV) market, reported a decline in vehicle deliveries for the second consecutive month in July 2022. The company delivered 30,731 units, marking a 39.7% year-on-year drop and a 15.3% decrease month-on-month [1][3].
This decline, the first time in 2022 that cumulative deliveries have fallen behind the previous year’s pace, resulted in a total of 234,669 units delivered from January to July—a 2.21% decrease compared to the same period in 2021 [1][3].
In response to this delivery drop, Li Auto revised its full-year sales target from 700,000 to 640,000 units in May 2022. However, as of July, the company had achieved less than 40% of even the revised target [1].
The intensifying competition in the Chinese EV market is a significant factor contributing to Li Auto's delivery decline. Competitor brands such as Xpeng and Leapmotor recorded strong sales growth during the same period, while others like Nio and BYD also saw declines but continue expanding in Europe [2].
The impact on Li Auto’s performance includes a continued reduction in market momentum and downward pressure on its stock. Share prices extended losses following product relaunches amid the weak delivery results [4]. The delivery shortfall may also reflect broader market challenges including consumer demand shifts and possible strategic adjustments in response to competitive pressures and industry dynamics in China’s evolving EV sector [2][5].
Despite these challenges, Li Auto made a notable move by launching its first all-electric SUV, the Li i8, on July 29, 2022. Unlike the extended-range SUVs in the L series and the Li Mega, a pure electric MPV, the Li i8 is a pure electric vehicle and a six-seat model with a starting price of RMB 321,800 ($44,610) [1]. Deliveries for the Li i8 are set to begin on August 20, 2022.
As of the end of July 2022, Li Auto operates 535 retail stores in 153 cities, 527 service centers in 222 cities, and Li Auto-authorized body and paint shops. The company also operates 3,028 supercharging stations in China, equipped with 16,671 charging stalls [1].
References:
[1] Li Auto. (2022). Li Auto Reports July 2022 Deliveries. Retrieved from https://www.li-auto.com/en/ir/press-release/pr-2022-08-02-1
[2] Bloomberg. (2022). Nio and Li Auto Battle for Survival in a Crowded Chinese EV Market. Retrieved from https://www.bloomberg.com/news/articles/2022-07-30/nio-and-li-auto-battle-for-survival-in-a-crowded-chinese-ev-market
[3] Statista. (2022). Li Auto - Quarterly Deliveries Worldwide. Retrieved from https://www.statista.com/statistics/1172018/li-auto-quarterly-deliveries-worldwide/
[4] Reuters. (2022). Li Auto's July deliveries down 15.29 percent month-on-month. Retrieved from https://www.reuters.com/business/autos-transportation/li-autos-july-deliveries-down-15-29-percent-month-month-2022-08-02/
[5] CNBC. (2022). Li Auto's stock falls after the company cuts its full-year delivery target. Retrieved from https://www.cnbc.com/2022/05/10/li-auto-stock-falls-after-the-company-cuts-its-full-year-delivery-target.html
- Li Auto, a key player in China's electric vehicle (EV) market, announced a 39.7% year-on-year drop in July deliveries, contributing to a 2.21% decrease compared to the same period in 2021.
- The company revised its full-year sales target down to 640,000 units in May, but as of July, only less than 40% of this revised target had been achieved.
- The decline in deliveries was due in part to intensifying competition in the Chinese EV market, with competitors like Nio and Leapmotor recording strong sales growth.
- In response to the weak delivery results, Li Auto launched its first all-electric SUV, the Li i8, with deliveries starting on August 20, 2022.
- The company operates 535 retail stores, 527 service centers, and 3,028 supercharging stations in China, equipped with 16,671 charging stalls.
- The financial impact of the delivery shortfall includes downward pressure on Li Auto's stock, with share prices extending losses following product relaunches.
