Li Auto has unveiled its bold plans to further establish its presence in China’s premium automotive sector. The company’s management recently announced their intentions to launch four new models in 2024, bolstering its product offerings and challenging established German luxury carmakers.
During an analyst conference call held after the disclosure of its second-quarter earnings, Li Auto revealed its upcoming models, which include an SUV incorporating extended-range technology and three battery electric vehicle (BEV) models. Currently, the company boasts a trio of extended-range electric vehicles (EREVs) for sale ā the Li L7, Li L8, and Li L9.
By 2025, Li Auto aims to broaden its product portfolio to encompass a super flagship model, five EREVs, and five BEVs. This ambitious expansion was first announced on April 18 at the commencement of the Shanghai Auto Show. Furthermore, the company has articulated its determination to meet the needs of domestic users seeking premium vehicles priced above RMB 200,000 by the same year.
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The much-anticipated centerpiece of Li Auto’s future lineup is anticipated to be the Li Mega, a super-flagship model slated for release in the fourth quarter. The company expresses confidence in the potential of this high-end MPV to claim the top-selling position in China’s luxury car market, commanding a price tag above RMB 500,000 ($69,370).
One of the imminent additions to Li Auto’s selection is the Li L6, a midsize five-seat SUV positioned in the RMB 300,000 range. Company executives are optimistic about the competitive edge of the Li L6 and anticipate it to lead the pack among their L-series offerings.
In terms of sales, Li Auto has witnessed strong demand, surpassing 30,000 units sold for consecutive months. The company aims to accelerate further, targeting 40,000 sales in a single month during the final quarter of the year. This ambition, however, is challenged by production capacity limitations.
The company’s manufacturing facility in Changzhou, Jiangsu province, operates with two production lines, capable of producing up to 50,000 units per month through double shifts. Challenges in parts supply have been identified as the primary bottleneck hindering capacity expansion.
Although initial sales exceeded expectations, Li Auto’s plans for capacity enhancement in the second quarter have been partially impeded due to ongoing commissioning of parts production lines. The company remains optimistic that these challenges will be resolved and capacity will be augmented in due course.
Li Auto has laid out comprehensive capacity planning for the upcoming years to fulfill production and delivery demands. The company envisions positioning itself to rival the sales performance of established German luxury automakers, namely Mercedes-Benz, BMW, and Audi, in China’s premium car market by 2024.
Data shared by Li Auto on Weibo earlier this month indicates that the current top-selling premium brands in China are Mercedes-Benz, BMW, and Audi, with sales figures of 63,900, 58,100, and 57,500 units, respectively, for the month of July. As Li Auto pursues its aspirations, the landscape of China’s premium automotive sector appears poised for dynamic shifts.
