Chinese EV maker Li Auto races to narrow sales gap with Tesla, predicts strong quarter despite sitting out price war

The Beijing-based company expects first-quarter deliveries to rise between 12.3 and 18.7 per cent compared with the fourth quarter

Li Auto held firm with its prices earlier this year as Tesla and some domestic rivals slashed theirs

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A visitor sits inside an L9, the six-seat flagship SUV made by Li Auto, at an exhibition in Guangzhou, China, in December 2022. Photo: Xinhua

Published: 10:29pm, 27 Feb 2023Updated: 3:17am, 28 Feb 2023

Chinese electric-vehicle (EV) maker Li Auto has issued a bullish forecast for its first-quarter deliveries, snapping at the heels of market leader Tesla even though it has held prices firm amid reductions by its rivals.

The Beijing-based company said on Monday that it aims to deliver 52,000 to 55,000 vehicles between January and March, up 12.3 per cent to 18.7 per cent from the 46,319 units it handed over to customers in the fourth quarter.

“The delivery guidance means that orders for Li Auto’s vehicles remain strong, even though premium EVs are not well received by middle-class consumers,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “To be precise, it has showed its potential to catch up with Tesla.”

Li Auto delivered 15,141 vehicles in January, up 23.4 per cent year on year. Therefore it would need to deliver 39,859 cars in February and March – nearly 20,000 per month – to meet the top end of its forecast.

Li Auto’s five-seat electric SUV, the L7. Photo: Li Auto website

Tesla, the front-runner in the premium EV segment in China, delivered 26,843 units to mainland buyers in January.

Li Auto, Shanghai-based Nio and Guangzhou-headquartered Xpeng are viewed as China’s best response to Tesla as their vehicles, priced at more than 200,000 yuan (US$28,772), feature high-performance batteries, autonomous driving technology and sophisticated in-car entertainment systems.