08 Apr China EV price war: Tesla rival Li Auto says cheapest model yet to ‘bring you happiness’, will launch next week
The mid-sized, five-seater Li L6 sport-utility vehicle (SUV) will be priced below 300,000 yuan (US$41,470), the carmaker said, adding that it will unveil prices during a launch event on April 18.
The SUV, which will come equipped with extended-range battery technology, will be the cheapest model developed by the Beijing-based carmaker yet. The L6 will “bring you happiness”, Li Auto said in a statement on the microblogging site Weibo on Monday.
“All EV builders are aware of weak market sentiment,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “The leading players are either offering price cuts or are unveiling cheaper models to cater to budget-conscious consumers.”
Li Auto is redoubling efforts to bolster sales in a cutthroat market. The carmaker, one of China’s top EV marques last year, has set a lofty delivery target of 800,000 units for 2024, which translates to a 127.5 per cent surge year on year.
In the first three months of this year, it has delivered a total of 80,400 units, an increase of 52.9 per cent from the same period a year ago.
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Last year, Li Auto reported a year-on-year jump of 182 per cent after handing over 376,030 vehicles to mainland customers. The company broke its monthly sales record for nine consecutive months from April to December.
Li Auto’s three larger SUVs, L7, L8 and L9, all of which use extended-range battery technology, have been well received by wealthy mainland families. The L7, currently Li Auto’s cheapest model, starts at 301,800 yuan.
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These SUVs also come fitted with small internal combustion engines that generate additional power during traffic jams. Li Auto also assembles and sells the pure-electric multipurpose vehicle Mega on the mainland.
Concerns about a slowing economy and lower wages are deterring mainlanders from buying big-ticket items such as cars.
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Cui Dongshu, general secretary of the China Passenger Car Association, said in February that most carmakers are likely to continue offering discounts to retain their market share, a trend that could reshape the domestic market.
The SU7, with a driving range of 700 kilometres, sports a starting prices of 215,900 yuan. Xiaomi CEO Lei Jun admitted at the launch ceremony that the company was selling the cars at a loss based on current prices.