What’s new: Chinese electric-vehicle startup Li Auto Inc.’s founder and Chief Executive Officer Li Xiang aims to sell 30,000 cars in June.
In the first 11 days of this month, Li Auto sold 11,900 cars, the company said Tuesday. That followed the sale of 28,277 units in May, a 146% jump from the same month last year and a monthly record.
Competitive pressure in the EV market in 2022 prompted Li Auto to make adjustments, and it is now seeing the results, Li said.
The background: As China’s market for electric vehicles rapidly expanded in recent years, Nio, Xpeng and Li Auto became the leading homegrown new-energy vehicle startups. They face competition from industry giants Tesla and BYD as well as new players such as Huawei.
In January, Tesla slashed prices for all versions of its China-made Model 3 and Model Y in an effort to boost sales amid slowing demand in the world’s largest car market. Other Chinese EV makers quickly jointed the price war.
In July 2022, Huawei partnered with Chongqing Sokon Industry Group Co. Ltd. to debut the Aito M7, a luxury hybrid SUV that directly competes with Li Auto’s ONE. Li Auto’s sales fell more than 50% to only 4,571 in August 2022. The startup quickly slashed prices and released a new model.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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