Li Auto has reportedly revised its sales target for 2024 downward after experiencing a weaker-than-expected performance so far this year. The company now aims to sell approximately 480,000 units, reflecting a 27.6 percent year-on-year increase, according to local media outlet LatePost.
Initially, in February, Li Auto’s founder, chairman, and CEO, Li Xiang, announced a full-year sales target of 800,000 units. However, this target was later adjusted due to weaker-than-expected orders for its Li Mega and 2024 L-series models.
Following the revision, Li Auto set a new sales target of 560,000 to 640,000 units, representing a 50-70 percent increase over 2023 sales. The company now hopes to achieve a sales rate of 50,000 units per month in the second half of the year.
Li Auto, known for its extended-range electric vehicles (EREVs), launched its first battery electric vehicle (BEV), the Li Mega MPV, on March 1, along with the 2024 Li L7, L8, and L9 models. Despite strong sales growth in 2023, the company has faced challenges in 2024, leading to a revised sales strategy and delayed release of new BEV models.
The company’s decision to lease a large office space in Shanghai in 2023 was part of its expansion plans, which included ramping up its sales and service network in eastern Chinese cities. However, with the delay of its new BEV models, the office space is mostly vacant, and Li Auto has decided not to renew its lease.
Additionally, Li Auto has reportedly made significant layoffs, affecting more than 18 percent of its workforce, or potentially over 5,600 people. Some of the laid-off employees have been recalled, particularly those in the testing team, indicating potential disruptions to core business operations.
The company’s challenges highlight the competitive nature of the EV market in China, where companies like Tesla and Nio are also expanding their presence. Despite the setbacks, Li Auto remains focused on regaining momentum and delivering on its long-term growth strategy.