Strong PHEV Product Offering but Lacking Clear BEV Strategy and Track Record

Li Auto is a leading new energy vehicle, or NEV, manufacturer in China, producing large plug-in hybrid electric sport utility vehicles, or SUVs, for family car use. The six-seater Li One SUV is built on its proprietary extended-range electric vehicle technology, offering total driving range of 800 km. Unlike competitors, Li Auto adopts a single point pricing strategy with Li One selling at CNY 349,800 for enhanced price transparency. The new model pipeline, the full-size SUV L9, built on the company’s new-generation plug-in hybrid powertrain platform, is set to start delivery in third-quarter 2022 priced at CNY 459,800. It also plans to release at least two pure electric models in addition to plug-in electric vehicles, or PHEVs, in 2023.