Li Auto Inc. January 2024 Delivery Update
- Year-over-year vehicle delivery increase of 105.8%
- Cumulative deliveries reached 664,529 vehicles by January 2024
- Plans to launch eight competitive models in 2024
- Aiming to establish 800 retail stores and over 500 authorized body and paint shops by the end of 2024
- Increased investment in research and development for autonomous driving, smart space, and smart electrification
- Targeting 800,000 annual deliveries and aiming to become the best-selling premium auto brand in China
- Over 330 super charging stations open during the Chinese New Year holiday, offering free electricity and charging services for Li Auto users
- None.
Insights
The reported increase in vehicle deliveries by Li Auto Inc. by 105.8% year over year is a significant indicator of the company's growth and its strong position in the competitive new energy vehicle (NEV) market in China. The expansion to 664,529 cumulative deliveries underscores the successful adoption of the brand's SUV models and its strategic positioning in the premium NEV segment priced above RMB 300,000. The company's ambitious target of 800,000 annual deliveries and the expansion of its product lineup to eight models suggest an aggressive growth strategy that could potentially increase market share and influence investor sentiment positively.
Furthermore, the planned enhancement of the sales and service network, aiming to establish 800 retail stores and over 500 authorized body and paint shops, represents a substantial investment in customer service infrastructure. This move could improve brand loyalty and customer satisfaction, which are critical in the automotive industry for repeat business and word-of-mouth recommendations. However, such expansion also implies significant capital expenditure, which stakeholders should monitor for its impact on the company's financial health.
Li Auto's announcement of its delivery figures and strategic initiatives can be expected to influence the company's stock performance. Investors generally view positive delivery numbers as a sign of health and growth potential in the automotive sector. The year-over-year growth rate is particularly robust, which could lead to an optimistic outlook on the company's revenue and earnings potential. The aggressive delivery target for the current year could signal to investors that the company is scaling operations to meet high demand, which is typically a bullish sign.
However, investors must also consider the costs associated with the expansion of the product portfolio and customer service network. While these investments are aimed at long-term growth, they will likely affect short-term financials. The waiving of electricity and charging service fees during the Chinese New Year could be seen as a marketing strategy to boost brand image and customer satisfaction, but it also represents a temporary foregone revenue stream. Investors will need to balance the potential for increased market penetration against the immediate financial implications of these strategic decisions.
The shift towards a diversified product lineup including both extended-range electric vehicles (EREVs) and battery electric vehicles (BEVs) reflects Li Auto's commitment to catering to varied consumer preferences and staying competitive in the NEV market. The introduction of a flagship family MPV, the Li MEGA, alongside updates to existing models, demonstrates innovation and responsiveness to market trends. These moves are likely to attract a broader customer base, particularly families seeking high-tech, premium vehicles.
The focus on autonomous driving, smart space and smart electrification indicates that Li Auto is investing in key areas that are expected to be differentiators in the NEV market. Such technological advancements could lead to higher margins and a more sustainable competitive advantage. The company's super charging network expansion and the promotion during the Chinese New Year holiday could also enhance customer experience and loyalty, which are vital for retaining market share in the face of intensifying competition from both domestic and international automakers.
BEIJING, China, Feb. 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 31,165 vehicles in January 2024, up
“Riding on the success of three SUV models, in 2023, we not only claimed the best-selling brand among SUVs priced above RMB300,000 but also secured the top-seller position in the RMB300,000 and higher NEV market in China,” commented Xiang Li, chairman and chief executive officer of Li Auto. “2024 will be an unprecedented year of growth for us, and we will establish a portfolio of eight competitive models, including four EREVs and four BEVs, to satisfy the evolving demands of our family users. Our 2024 launches will kick off in March with the official release and commencement of deliveries of our high-tech flagship family MPV, Li MEGA, alongside the rollout of the 2024 Li L7, Li L8, and Li L9. Furthermore, we will continue to increase our investment in research and development and elevate our technical capabilities in autonomous driving, smart space, and smart electrification. A comprehensive upgrade of our sales and servicing network is also underway, with an aim of establishing 800 retail stores and over 500 Li Auto-authorized body and paint shops by the end of 2024. Reinforced by our diverse product lineup, together with the strength of our products and enhanced synergies across our production, supply chain, and sales and servicing network, we will challenge ourselves with a target of new high of 800,000 annual deliveries and a goal towards the best-selling premium auto brand in China.
“Our super charging network is progressing smoothly. All our over 330 super charging stations will be open during the Chinese New Year holiday from February 9 to February 17. Throughout this period, we are pleased to completely waive electricity and charging service fees for Li Auto users at these super charging stations. We hope this helps ensure a convenient and carefree journey for our users, allowing them to fully relish the joyous moments of family reunion.”
As of January 31, 2024, the Company had 474 retail stores in 142 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
FAQ
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