Li Auto Inc. February 2024 Delivery Update
- Strong year-over-year growth in vehicle deliveries.
- Upcoming launch of new models to drive sales growth.
- Expansion of retail stores and servicing centers across China.
- None.
Insights
The reported 21.8% year-over-year increase in vehicle deliveries by Li Auto Inc. reflects a positive trend in the company's operational performance, which is a vital indicator of growth and market acceptance. The automotive industry, particularly the new energy vehicle (NEV) sector in China, is highly competitive and such growth rates are significant as they suggest that Li Auto is maintaining its market share and possibly outpacing some of its competitors. This performance may also be a reflection of the company's effective management of supply chain issues and consumer demand forecasting.
Furthermore, the anticipation surrounding the launch of the new Li MEGA and 2024 Li L series models indicates the company's commitment to innovation and addressing consumer needs, such as range anxiety with battery electric vehicles (BEVs). This could potentially expand their customer base and strengthen brand loyalty. The target to increase monthly deliveries to 50,000 vehicles in March is an ambitious goal that, if achieved, could substantially impact revenue and profitability in the short term.
An increase in vehicle deliveries typically translates to higher revenue streams for automotive companies. For investors, the delivery numbers from Li Auto provide a positive signal, potentially leading to an optimistic outlook on the company's quarterly earnings. However, it's critical to evaluate the cost implications of rolling out new models such as the Li MEGA and the updated Li L series. Research and development expenses, marketing costs and potential discounts to clear out older inventory could offset some of the revenue gains in the short term.
Long-term implications include the potential for increased market share and improved economies of scale, which can lead to better margins. Investors should also consider the company's retail and service network expansion, as this indicates a strategic investment in customer service and post-purchase support, which are crucial for customer retention and brand reputation in the automobile industry.
The launch of new models by Li Auto, particularly a model like Li MEGA designed for multi-generational households, suggests a strategic targeting of a specific market segment. This could set Li Auto apart from competitors if the model successfully addresses the unique needs of these consumers. The emphasis on mitigating range anxiety, a common barrier to BEV adoption, indicates an understanding of consumer concerns and a focus on providing practical solutions.
The expansion of the company's retail and service network is also a critical factor in supporting the growing fleet of Li Auto vehicles, ensuring that customer service keeps pace with sales. This network expansion is an important aspect of the company's growth strategy, as it can lead to improved customer satisfaction and loyalty, which are particularly important in the competitive NEV market.
BEIJING, China, March 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 20,251 vehicles in February 2024, up
“Even with the impact of Chinese New Year and some trims of Li L series models sold out as we prepare for switching to new models, our average daily delivery in February (excluding the eight-day Chinese New Year holiday period) still increased significantly compared with that of February 2023. We are scheduled to officially launch the long-expected Li MEGA and 2024 Li L series models at our spring launch event this afternoon. Li MEGA is a revolutionary model meticulously crafted to meet the needs of multi-generational households, boasting remarkable product strengths, and effectively addressing the long-standing challenges of range anxiety of BEVs. Additionally, our 2024 Li L7, Li L8, and Li L9 models will come equipped with enhanced functions and features to better serve our family users. With the release and deliveries of these new models, we target to have our monthly deliveries rebound to 50,000 vehicles in March,” commented Xiang Li, chairman and chief executive officer of Li Auto.
As of February 29, 2024, the Company had 475 retail stores in 142 cities, as well as 355 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
FAQ
How many vehicles did Li Auto deliver in February 2024?
What is the total cumulative deliveries of Li Auto vehicles as of the end of February 2024?
What new models is Li Auto planning to launch?
How many retail stores and servicing centers does Li Auto have as of February 29, 2024?
What is the target monthly delivery goal for Li Auto in March?
