China’s EV wars: Li Auto becomes Tesla’s nearest rival in premium segment as it delivers record 25,000 cars in April

The milestone takes Li Auto ahead of its main domestic rivals, Xpeng and Nio, in their race to compete with the US giant on their home turf
According to Li Auto, the strong deliveries are largely thanks to the popularity of its new L7, a five-seat flagship SUV

Electric & new energy vehicles

Yujie Xuein Shenzhen

Published: 8:33pm, 1 May 2023

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Chinese carmaker Li Auto has set a new record, becoming the first home-grown premium electric vehicle (EV) brand to deliver more than 25,000 units in a single month.

The milestone achievement takes Li Auto a step ahead of its main domestic rivals, Xpeng and Nio, in their race to compete with US giant Tesla on their home turf.

Beijing-headquartered Li Auto said on Monday that it delivered 25,681 units in April, its highest ever number and more than a five-fold increase from a year ago.

The carmaker has stayed on the sidelines of a recent price war that has seen Tesla and some domestic rivals slash their prices.

April was the second consecutive month in which Li Auto exceeded 20,000 deliveries, having handed over the keys to 20,823 cars in March. It also briefly hit the 20,000 unit mark in December.

Xpeng, an electric-car maker headquartered in Guangzhou, delivered 7,079 smart cars in April, about the same as in the previous month.

Shanghai-headquartered Nio delivered 6,658 vehicles, a decline of 36 per cent from March.

The latest figures make Li Auto the nearest rival to Elon Musk’s Tesla in China’s premium electric car market, after the US giant delivered 76,663 units in March.

According to Li Auto, the strong deliveries are largely thanks to the popularity of its L7, a five-seat flagship sport-utility vehicle (SUV) launched in February, which accounted for nearly 40 per cent of the deliveries in April.

“We are pleased to have delivered over 10,000 Li L7s in its first full month of deliveries, establishing the vehicle as a preferred choice among five-seat premium SUVs for Chinese families while marking the first time a Chinese branded five-seat SUV priced above 300,000 yuan (US$43,400) has achieved this monthly delivery milestone,” Li Xiang, the company’s chairman and chief executive officer, said in a statement on Monday.

“We are also proud to have captured leading shares in both China’s NEV [new energy vehicle] and SUV markets in the price segment above 300,000 yuan in the first quarter of 2023.”

The L7 is available in three versions – Air, Pro and Max – which are priced at 319,800 yuan, 339,800 yuan, and 379,800 yuan, respectively. It can go as far as 1,315km on a single charge and uses extended-range batteries made by Chinese companies Sunwoda Electric Vehicle Battery and Svolt Energy Technology, and is seen as part of an attempt by Li Auto to widen its customer base to reach wealthier and more tech-savvy buyers.

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During the Shanghai Auto Show last month, the company unveiled a road map in which it said it expects to start beta-testing its Li AD Max 3.0 autonomous driving system this quarter with a view to rolling it out in 100 cities nationwide by the end of the year.

Chinese EV makers have been increasingly making strides in their bid to compete with foreign auto giants not only in China, the world’s biggest EV market, but also overseas. Last year, Shenzhen-based carmaker BYD became the world’s largest producer of electric cars when it surpassed Tesla with deliveries of 1.86 million fully electric and plug-in hybrid vehicles.

In the country’s premium EV market, the competition is fierce, with more Chinese carmakers such as Geely-owned Zeekr and Alibaba-backed IM Motors launching near-luxury brands or models to compete with Tesla’s Model 3 and Model Y. Zeekr launched its Zeekr X compact SUV, and IM Motors rolled out the LS7 luxury SUV.

Tesla offered huge discounts in October and January to attract more buyers and maintain market share.

Additional reporting by Daniel Ren