Li Auto initiates deliveries of its i8 electric SUV, aiming to sell up to 10,000 units by September's end.
Li Auto Kicks Off Deliveries of Li i8 SUV in China
Li Auto, a Chinese electric vehicle (EV) manufacturer, has announced the delivery start of its Li i8 all-electric SUV in 44 cities across China. The company made the announcement on Weibo, China's popular microblogging platform.
The Li i8, which was launched on July 29, is a six-seat electric SUV and a follow-up model to the Li Mega MPV. Li Auto re-launched the Li i8 on August 5, reducing the available trims from three to one and lowering the price. The current starting price for the Li i8 stands at RMB 339,800 ($47,330).
Li Auto aims to deliver 8,000 to 10,000 Li i8 units by the end of September. However, the company has not publicly disclosed specific delivery partners or supply chain partners for these deliveries. The company is reportedly working with its supply chain partners to aim for this delivery target.
In addition to the Li i8, Li Auto is also set to launch the Li i6, a smaller electric SUV, in September. The Li i6 is expected to have a lower price compared to the Li i8, and its estimated sales volume is expected to significantly contribute to Li Auto's sales and help its stock price rebound.
Deutsche Bank analyst Wang Bin's team estimated that Li Auto has more than 12,000 cancellable orders for the Li i8, and they also estimated that the Li i6 will achieve an average monthly sales volume of about 15,000 units. This estimate suggests that the Li i6 could become a major player in the Chinese EV market.
Li Auto's factories are operating at full capacity to ensure deliveries of over 8,000 Li i8s by the end of September. The Li i8 deliveries are taking place in 44 cities across China.
Amidst intensifying competition, Li Auto has reportedly adjusted its sales system. However, the details of these adjustments have not been disclosed.
Deutsche Bank's initial monthly sales forecast for the Li i8 was 5,000 units, but Li Auto's initial sales guidance for the Li i8 is higher than this forecast. This suggests that the demand for the Li i8 may be stronger than expected.
The exchange rate used in this article is $1 = RMB 7.1801. Li Auto is listed on the NASDAQ under the ticker symbol LI.
