Strong PHEV Product Offering but Lacking Clear BEV Strategy and Track Record

Li Auto is a leading new energy vehicle, or NEV, manufacturer in China, producing large plug-in hybrid electric sport utility vehicles, or SUVs, for family car use. The six-seater Li One SUV is built on its proprietary extended-range electric vehicle technology, offering total driving range of 800 km. Unlike competitors, Li Auto adopts a single point pricing strategy with Li One selling at CNY 349,800 for enhanced price transparency. The full-size SUV L9, built on the company’s new-generation plug-in hybrid powertrain platform, started delivery in third-quarter 2022 priced at CNY 459,800. For its new model pipeline, Li Auto released the L7 SUV in February 2023 and delivery is set to start in March. In addition, the company also plans to release at least one pure electric model in addition to plug-in electric vehicles, or PHEVs, in 2023.