Li Auto has set a target of 20% year-on-year sales growth for 2026, as it seeks to recover from a decline in deliveries and mounting competitive pressures in China’s electric vehicle market.
Founder, Chairman and CEO Li Xiang announced the target during an earnings call on Thursday, signaling a push to restore momentum following a challenging 2025. “New strategies will help the company resume growth,” Li said.
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The automaker delivered 406,343 vehicles in 2025, down 18.81% from the previous year. The 2026 growth target implies deliveries of around 490,000 units, reflecting a planned rebound driven by operational and product adjustments.
Central to the plan is a newly introduced “3+2” growth strategy aimed at improving efficiency and strengthening execution. The approach includes optimizing the company’s sales network, ensuring a smooth transition to the next-generation flagship extended-range SUV Li L9, and supporting steady growth in its battery electric vehicle lineup.
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Li Auto is also revamping its sales structure, re-evaluating its direct-sales model and introducing a “store partner” program in March to incentivize sales teams and improve per-store productivity.
On the product side, the company plans to launch the updated Li L9 series in the second quarter, featuring an 800-volt high-voltage platform and 5C supercharging technology. The Livis trim, which incorporates embodied artificial intelligence features, is priced at 559,800 yuan.
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The performance of Li Auto’s battery electric vehicles is expected to play a critical role in achieving its growth goals. Management said it is working to address supply chain constraints and ramp up production capacity. The company also plans to introduce a new flagship electric SUV, the Li i9, in the second half of 2026.
Despite the ambitious targets, financial pressures persist. Li Auto reported a net income of 20.2 million yuan in the fourth quarter of 2025, alongside an operating loss of 442.6 million yuan. Quarterly revenue fell 35.0% year-on-year to 28.8 billion yuan, reflecting weaker market demand and intensified price competition.
Vehicle margin declined to 16.8% in the fourth quarter from 19.7% a year earlier, as new model rollouts and promotional efforts weighed on average selling prices.
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The company continues to invest heavily in technology, with research and development spending reaching 11.3 billion yuan in 2025. About half of that budget was allocated to artificial intelligence, which Li Auto sees as a key driver for improving operational efficiency and supporting long-term growth.
Looking ahead, 2026 is expected to mark Li Auto’s entry into overseas markets, a move aimed at diversifying revenue streams and mitigating the impact of intensifying competition in its domestic market.
