Chinese EV maker Li Auto challenges Tesla, home-grown rivals, with new five-seat SUV as competition intensifies
- The L7, starting at 319,800 yuan (US$47,108), is the third new model the start-up has launched in the world’s largest EV market in just eight months
- The car’s price point is significantly below that of Li Auto’s flagship L9 SUV, but nearly 60,000 yuan above the starting price of Tesla’s Model Y
The Beijing-based company’s L7, starting at 319,800 yuan (US$47,108), is the third new model the start-up has launched in the world’s largest EV market in just eight months. Orders began on Thursday, with delivery to start in early April.
“The L7 is aimed at widening the customer base since Li Auto’s electric SUVs have earned a good reputation for their performance among wealthy drivers,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “It will help Li Auto narrow its gap with Tesla, though demand for premium EVs is weakening.”
A Huaxi Securities research report said on Thursday that the launch of L7 reflects Li Auto’s improved development capabilities, adding that the five-seat SUV would appeal to families with a budget of about 300,000 yuan who want to own a premium vehicle.
The L7 can go as far as 1,315 kilometres on a single charge, using extended-range batteries made by Chinese companies Sunwoda Electric Vehicle Battery and Svolt Energy Technology.
The L7 will compete against both EVs and combustion-powered cars including Mercedes-Benz’s GLE, Xpeng’s G9 and Tesla’s Model Y.
Li Auto, founded in 2015, delivered 15,141 vehicles to buyers in January, 28.7 per cent fewer than in December and 23.4 per cent below January 2022 deliveries, as the weeklong Lunar New Year holiday disrupted sales.
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Tesla delivered 26,843 vehicles in mainland China in January, down 36 per cent from 41,926 units in December, but up 38.8 per cent from the same period in 2022.
The basic edition of the Model Y SUV now sports a price tag of 259,900 yuan, 18.7 per cent lower than the L7.
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Separately, another Chinese EV start-up, Leapmotor, started selling an extended-range version of its flagship SUV, the C11, on Thursday.
The company expects to start delivering the extended-range C11 in the coming months, but neither an exact date nor the price has been announced. The regular-range C11 starts at 179,800 yuan.