China’s EV market: Li Auto gains on Tesla, bucks downward sales trend as premium models appeal to affluent motorists

Beijing-based Li Auto has outperformed its rivals, setting a new sales record in April, at a time when the overall industry reported a decline

Li Auto has stayed out of the ongoing price war which saw market leader Tesla and some domestic rivals slash prices by as much as 40 per cent

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

Published: 8:00pm, 17 May 2023Updated: 12:24am, 18 May 2023

Unfazed by China’s tepid electric vehicle (EV) sales this year, Li Auto has stepped up production and deliveries of its high-end models reflecting the carmaker’s confidence in its design and battery technology prowess.

The Beijing-based EV start-up has bucked the industry downtrend, setting a new sales record in April, standing out in an industry that is languishing after a bruising price war.

“Li Auto is the most defensive OEM (original equipment manufacturer) name amid the price war given its premium positioning and leadership in the niche family car market,” said Jefferies analysts in a note after the carmaker’s earnings beat the brokerage’s estimates mainly on the strength of lower operating expenditure driven by improved operational efficiency.

Experts say Li Auto has its finger on consumers’ pulse, and is particularly good at catering to tastes of affluent motorists.

A Li L7 electric SUV by Li Auto is displayed at the Auto Shanghai show, in Shanghai, China, April 18, 2023. Photo: REUTERS

Li Auto, founded by its chief executive Li Xiang in 2015, became the first Chinese premium electric-car maker to rise above the monthly delivery threshold of 25,000 units in April, making it the nearest rival to Tesla in the world’s largest automotive and EV market.

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