Li Auto cuts 2025 sale target amid increasing competition

Li Auto has lowered its 2025 sales goal to 640,000 vehicles, down from a previously reported target of 700,000, as the company adopts a more cautious approach amid intensifying competition.

The revised breakdown includes 520,000 units for its L-series range-extended models and 120,000 for its pure electric lineup, including the Mega minivan.

The adjustment comes after a subdued market reception for the refreshed L6, launched in April at a starting price of 249,800 yuan (US$34,400). Unlike past rollouts, Li Auto has not released preorder figures for the model, fueling speculation of weak demand.

The L-series now faces greater pressure from a wave of new range-extender rivals, including Zeekr, XPeng, and Lotus.

Meanwhile, the company is raising expectations for the Mega after presales neared 10,000 units, which nearly matched its full-year total in 2024.

To support profitability, Li Auto is tightening its budget. Department-level spending has been reduced, and some hiring plans delayed, according to an insider. However, the company is not planning large-scale layoffs.

🔗 Source: 21st Century Business Herald

🧠 Food for thought

1️⃣ China’s EV market maturing into rational growth phase

Li Auto’s target adjustment reflects a broader shift in China’s EV market from hypergrowth to more sustainable expansion.

Despite the 8.6% reduction in overall targets, the revised goal of 640,000 vehicles still represents a 28% increase from the 500,508 units Li Auto delivered in 2024 1.

This pattern of moderating expectations is emerging across the sector as the Chinese EV market matures, with NEVs already accounting for nearly 50% of all passenger vehicle sales as of early 2025 2.

The intense competition among the estimated 500 EV startups that have emerged since 2015 is forcing companies to balance ambitious targets with market realities 3.

Li Auto’s implementation of departmental budget cuts and hiring freezes demonstrates how even market leaders are preparing for a more financially disciplined growth phase.

2️⃣ Strategic pivot toward pure EVs despite overall target reduction

Li Auto’s revised plan reveals a significant strategic shift: while reducing overall sales targets, the company is substantially increasing its pure EV forecast from 50,000 to 120,000 units 1.