Li Auto Inc. December 2023 Delivery Update
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Insights
Li Auto's significant year-over-year growth in vehicle deliveries, particularly the 137.1% increase in December and the overall 182.2% increase in 2023, signals a robust expansion in the company's production capabilities and market demand for its new energy vehicles (NEVs). The achievement of surpassing 600,000 cumulative deliveries positions Li Auto as a formidable competitor in the Chinese NEV market, which is known for its rapid growth and government support towards green transportation.
The company's aggressive expansion of its retail and service network, with 467 retail stores and 360 servicing centers, underlines its commitment to improving customer experience and accessibility. This infrastructure growth is a strategic move to sustain the increasing sales volume and to build brand loyalty.
The reported advancements in technology, such as the OTA version 5.0 with new autonomous driving and smart space features, demonstrate Li Auto's dedication to innovation. These enhancements could lead to increased consumer confidence in the brand's technological capabilities, potentially translating into higher sales and market share.
Investors may view Li Auto's record-breaking delivery numbers and the milestone of being the first Chinese emerging new energy automaker to surpass 300,000 annual deliveries positively. This performance could reflect favorably on the company's revenue growth and market valuation. Achieving and exceeding set delivery targets provides a tangible measure of the company's operational efficiency and ability to scale, which are critical factors for investor confidence.
The financial implications of maintaining the title of best-selling premium auto brand in the SUV market each month since June 2023 could mean a sustained revenue stream from a high-margin segment. This is particularly relevant given the premium nature of Li Auto's vehicles, which typically command higher prices and profit margins.
Long-term implications of Li Auto's growth trajectory and market penetration could include increased bargaining power with suppliers, potential economies of scale and a stronger competitive position against both domestic and international automakers.
The Chinese NEV sector's competitive landscape is witnessing Li Auto's rapid rise as a key player, with its delivery figures outpacing many of its peers. The company's focus on the premium SUV segment, a lucrative market niche, has paid off by capturing consumer interest in a country where SUVs are highly favored.
Li Auto's strategy of frequent OTA updates, with the latest being version 5.0, is indicative of the company's agile approach to product development and customer satisfaction. This approach is critical in an industry where software capabilities are increasingly becoming a differentiator.
The expansion of Li Auto's physical footprint through retail stores and service centers is a move that contrasts with some competitors' heavier reliance on online sales models. This could provide a competitive edge in delivering a comprehensive customer experience, from sales to after-sales support, which is crucial in retaining customer loyalty in the premium segment.
BEIJING, China, Jan. 01, 2024 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced that the Company delivered 50,353 vehicles in December 2023, up
“We successfully reached our monthly delivery target of 50,000 vehicles in December and achieved full-year vehicle deliveries of 376,030 in 2023. This is the first time in history for a Chinese emerging new energy automaker to surpass the annual delivery milestone of 300,000 vehicles. Since June 2023, Li Auto has become the best-selling premium auto brand in the SUV market for each month in China. With support and recognition of over 600,000 users, we continually deepen our research and development efforts across products, platforms, and systems, among others. Since the Li L series first commenced deliveries, we have completed over 20 OTA upgrades. In particular, the OTA version 5.0, which was officially released in December with 145 new functions and 100 optimized features, provides a comprehensive revolution in autonomous driving and smart space. Looking ahead into 2024, we will continue to push the limit of growth and strive to become China’s best-selling premium auto brand,” commented Xiang Li, chairman and chief executive officer of Li Auto.
As of December 31, 2023, the Company had 467 retail stores in 140 cities, as well as 360 servicing centers and Li Auto-authorized body and paint shops operating in 209 cities.
About Li Auto Inc.
Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Create a Mobile Home, Create Happiness (创造移动的家, 创造幸福的家). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. The Company started volume production in November 2019. Its current model lineup includes Li MEGA, a high-tech flagship family MPV, Li L9, a six-seat flagship family SUV, and Li L8, a six-seat premium family SUV, as well as Li L7, a five-seat flagship family SUV. The Company leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions while expanding its product line by developing new BEVs and EREVs to target a broader user base.
For more information, please visit: https://ir.lixiang.com.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles and high-power charging battery electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
Li Auto Inc.
Investor Relations
Email: ir@lixiang.com
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
+86-10-6508-0677
Email: Li@tpg-ir.com
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