Li Auto June deliveries fall almost 15% as sales pressure persists

• Li Auto delivered a cumulative 193,472 vehicles in the first half, down 5.13% from a year earlier.
• Li Auto’s June deliveries marked the second consecutive month of year-on-year decline.

Li Auto (NASDAQ: LI) delivered 30,895 vehicles in June, down 14.84% from a year earlier, according to data it released on Wednesday.

The figure marked the company’s second consecutive month of year-on-year decline, and was also down 7.36% from 33,350 in May.

In the first half of this year, Li Auto delivered 193,472 vehicles, down 5.13% from 203,938 in the same period a year earlier.

As of June 30, the company’s cumulative deliveries reached 1,733,687.

Li Auto has faced pressure on both sales and profitability in recent months. The company posted an unexpected net loss of 2.3 billion yuan ($339 million) in the first quarter of this year.

Its gross margin also plunged to 7.9% from 20.5% a year earlier.

To boost sales, the company is carrying out a full overhaul of its high-margin L-series extended-range vehicles.

On June 23, Li Auto officially launched the all-new Li L8, a five-seat flagship SUV (sport utility vehicle).

The new vehicle features connected zero-gravity seats, an 800-volt active suspension system, and a fully drive-by-wire chassis. It also comes with the Mach M100 chip and a 5C range extension system.

The revamped Li L8 shifts from its predecessor’s six-seat layout to a five-seat configuration, with a starting price higher than the older model. The official guide prices for its Ultra and Livis versions are 369,800 yuan and 429,800 yuan, respectively.

The company plans to launch the new-generation Li L6 in July, one of its entry-level and best-selling extended-range electric vehicle (EREV) models.

On the battery electric front, the Li i6’s cumulative production surpassed 150,000 units as of June. The all-electric SUV has been the main pillar of the company’s sales in recent months.

As of June 30, Li Auto had 495 retail stores in 160 cities. It also operated 536 servicing centers and authorized body-and-paint shops in 220 cities.

The company also operated 4,097 super charging stations in China, equipped with 22,593 charging stalls.

Analysts say the new-generation Li L8 has an aggressive pricing strategy, which is linked to weaker orders for the Li L9 in June.

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