Li Auto unexpectedly revised its first-quarter delivery guidance downwards, leading to a new report suggesting a reduction in the company’s full-year sales target as well.
According to local media outlet Xchuxing, Li Auto now anticipates selling between 560,000 and 640,000 units for the full year of 2024, down from the previous estimate of 650,000 to 800,000 units, citing the company’s meeting minutes.
The high-profile carmaker announced a first-quarter vehicle delivery forecast of 76,000 to 78,000 units, a decline from the previous projection of 100,000 to 103,000 units, due to lower-than-expected order intake.
“On February 1, we set a new high target of 800,000 annual deliveries for China’s best-selling premium car brand,” Li Xiang, Li Auto’s founder, chairman, and CEO, said during a recent meeting.
The downward revision in the first-quarter delivery guidance is attributed to the weaker-than-expected performance of its first battery electric vehicle (BEV) model, the Li Mega MPV (Multi-Purpose Vehicle), after its launch.
Li Auto’s management admitted to misjudging the operating strategy of the Li Mega, which was expected to become the best-selling model in China with a price tag exceeding 500,000 yuan ($69,220).
“The operating strategy of Li Mega was mis-paced,” Li Xiang said in a statement.
The company’s expectations for the upcoming new extended-range electric vehicle (EREV) model, the Li L6, remain unchanged at steady-state sales of over 20,000 units. The Li L6, priced under RMB 300,000, is scheduled to be launched in April.
“The Li L6 aims to challenge monthly sales of 30,000 units,” Zou Liangjun, the company’s senior vice president, said in a January 12 interview with local media.
Li Auto aims to maintain a gross margin of over 20 percent for the first quarter and the full year, according to the meeting minutes.