Li Auto recorded its first-ever annual internet revenue only a week in the past, revealing that it delivered virtually 3 times extra autos final 12 months in comparison with 2022. But regardless of the improved outcomes, the corporate warned investors on its earnings name that the primary quarter of 2024 wouldn’t be as rosy.
Latest information launched by the corporate helps that pessimistic outlook. Li Auto delivered 20,251 autos in February, 35% fewer than what it delivered in January, and less than half what it delivered in December 2023. Fellow Chinese language EV startups Xpeng and Nio additionally reported month-on-month declines in deliveries.
U.S. carmaker Tesla sold 39,881 vehicles in China in January, down 47% from the previous month, in keeping with information from the China Passenger Automobile Affiliation.
China’s shoppers have flocked to EVs lately, serving to to develop an trade that appears poised for international growth. However the breakneck tempo of progress is displaying indicators of slowing down, as shopper sentiment remains shaky.
Will you purchase a EV with a fridge?
Li Auto’s answer to slowing sales is its first fully-electric minivan, dubbed the Li Mega, which the corporate unveiled on Friday. The Beijing-based automaker is pricing the minivan at 559,800 yuan ($77,800), and is concentrating on rich households for its new “mobile home.”
“We believe Li Mega will be our next hit product,” mentioned Li Xiang, the co-founder and CEO of Li Auto, mentioned on the launch occasion in Shanghai in keeping with the South China Morning Post. Deliveries are anticipated to start this month.
The Mega encompasses a built-in fridge, couch, and platinum, holding with the “mobile home” theme. Li Auto can also be touting a brand new Qilin 5C battery, collectively developed with CATL, that may obtain a driving vary of 500 kilometers after simply 12 minutes charging in a Li Auto tremendous charging stall. The corporate says it’s planning to take a position at the least 6 billion yuan ($833 million) to ascertain over 5,000 self-operated 5C charging stations, although didn’t give particulars on an funding timeline.
The multipurpose automobile market is seen as a distinct segment market in China, as a result of concentrating on rich households with a couple of baby. Chinese language shoppers bought 1.1 million MPVs—electrical and non-electric—final 12 months, out of a complete 21.7 million passenger cars sold.
Buyers on Monday didn’t appear to be satisfied by Li Auto’s new minivan. Shares fell over 10% in Hong Kong buying and selling on Monday. “Investors’ feedback on the MEGA launch event are polarized in terms of pricing and interior design,” CCB Worldwide analyst Ke Qu informed the Wall Street Journal.
