Li Auto’s Expected Q3 Delivery Drops Over 5% to 25,500 Units

Chinese electric vehicle maker Li Auto now expects its third-quarter 2022 deliveries to total around 25,500 units, significantly lower than previous forecasts, the company said Sept. 26. In its second quarter financial report, the company’s expected total shipments were between 27,000 and 29,000 units, indicating that the third quarter figure could be 5.6% lower than the lower expectation. .

Compared to its competitors, Li AutoThe original third quarter delivery target was relatively conservative. NIO is aiming for 31,000 to 33,000 deliveries in the third quarter – its highest quarterly goal ever. Meanwhile, XPeng is expected to deliver 29,000 to 31,000 vehicles in the third quarter, up 13% to 20.8% year on year.

In terms of sales volume, Li Auto has encountered great challenges recently. In August, its delivery volume was only 4,571 units, more than 50% less than that of the previous year and the previous month. It wasn’t just far behind XPeng and NIObut it was also overtaken by the newer NETA Auto and Leapmotor.

In July and August this year, the cumulative deliveries of Li Auto reached 15,000 units. Based on the latest third-quarter delivery estimates, it expected to deliver around 10,500 vehicles in September, the same level as July.

Li-AutoThe poor business performance of is closely related to the iteration of its model. Since the launch of the L9, sales of the Li ONE have been squeezed. During a second-quarter earnings call, company officials said orders for Li ONE were slowly increasing, which is also in line with industry expectations that it is common for Li ONE sales to old models suffer after the launch of new models.

Shortly thereafter, however, Li Auto revealed that a replacement for the Li ONE, the L8, will be available soon. According to the latest announcement, the L8 will be unveiled at a launch event on September 30, with deliveries officially starting in early November.

The Li ONE inaugurated a suspension. At the beginning of September, a price reduction worth 20,000 yuan ($2,790) was launched for the promotion of the Li ONE with a price of 349,800 yuan ($48,816).

The sudden sales promotion and suspension of production triggered complaints from a large number of Li ONE owners, which in turn had a great impact on the electric vehicle manufacturer’s brand and reputation. .

In response to complaints, Li Auto announced after-sales instructions for Li ONE owners. The company will guarantee to supply genuine parts for at least 12 years and provide OTA upgrade services. Owners can also enjoy the same after-sales services as buyers of the new model, and buyers’ lifetime warranty rights will not be affected.

SEE ALSO: Li Auto bombarded with consumer complaints about Li ONE

The company attributed the reduction in its third-quarter delivery forecast to supply chain constraints and said it would continue to work closely with its supply chain partners to resolve bottlenecks. supply and speed up production.

Delivery of the L9 model has already been delayed due to supply chain issues. In late August, the L9 suffered delivery delays due to power outages in Sichuan. During the second quarter earnings call, Li Xiang, CEO of Li Autosaid the company will deliver over 10,000 L9s in September.

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