By Jiahui Huang


Li Auto posted its slowest deliveries growth in nearly two years amid an intensifying EV price war, lower-than-expected sales of its first fully electric model, and rising competition from Huawei-backed Seres.

The Chinese electric-vehicle maker said Wednesday that it delivered 25,787 vehicles in April, up 0.4% on the year. That marked its slowest monthly growth since August 2022, and a drop of 11% from March's deliveries.

That adds to the challenges the hybrid-vehicle specialist has faced so far this year as it wages a price war in China against heavyweights like BYD and Tesla.

The Beijing-based company's venture into the fully electric-vehicle space has yet to show clear signs of success. Sales of Li Auto's debut model the Mega missed analysts' forecasts in the first quarter after it hit the market with a slightly higher-than-expected price tag.

The company is also facing intensifying competition from Seres, another hybrid-car specialist backed by Chinese telecoms giant Huawei Technologies. Seres outdelivered Li Auto in the first quarter, tallying 85,842 units versus Li Auto's 80,400.

Li Auto last week cut prices on all of its models except the new plug-in hybrid L6 by up to around $4,000. The company also said Wednesday that it will begin large-scale deliveries this month of the L6, its first model priced under 300,000 yuan, the equivalent of about $41,400.

Whether the latest price cuts and delivery ramp-up pay off for Li Auto remains to be seen, with other carmakers like Tesla also continuing to reduce prices in the increasingly cut-throat competition for China's EV consumers.

Other Chinese EV makers including XPeng, NIO and BYD are expected to release monthly sales later today and on Thursday.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

05-01-24 0142ET