Li Auto has once again had to dial down its annual sales target, and the reasons behind this move are becoming quite the saga. Initially aiming to sell a whopping 800,000 units in 2024, the ambitious automaker has had to steadily lower its expectations. The disappointing launch of the much-anticipated Li Mega has been a key factor in this downward spiral. Now, Li Auto has recalibrated its sales goal to a more modest 480,000 units, marking a significant shift in strategy and performance measurement.
What?
Li Auto, a well-known Chinese EREV manufacturer that made waves in 2023, has faced setbacks with its latest venture, the Li Mega. This all-electric minivan was meant to spearhead the company’s entry into the EV market, but sales figures fell far short of projections. With just 1,145 units sold in April, the Mega has been a major disappointment for Li Auto, prompting a series of adjustments to its sales targets and future plans.
Why does it matter?
The failure of the Li Mega has thrown a wrench into Li Auto’s carefully laid plans. The company’s shift towards electric vehicles was meant to capitalize on changing consumer preferences and technological advancements, particularly in fast-charging capabilities. However, the market response to the Mega suggests that Li Auto may have misjudged the landscape, leading to a cascade of repercussions on its sales figures and strategic direction.
How is it going to shape the future?
Li Auto’s decision to postpone the launch of its second electric car for 2025 signals a significant pivot back towards EREVs, indicating a recalibration of its priorities and product focus. With the new sales goal set at 480,000 units for 2024, Li Auto faces a challenging road ahead as it strives to regain its footing in a competitive market. The success of its upcoming models, such as the Li L6 crossover, will be crucial in determining whether Li Auto can meet its revised targets and regain momentum in the industry.