China’s Li Auto has established after-sales and service centers in several Middle Eastern countries and set up an independent department to oversee its efforts to boost its international expansion. Global growth is among the key pillars underpinning the electric vehicle maker’s goals of maintaining sales momentum in 2025, chief executive Li Xiang told investors on March 14.
Li said “many experienced personnel” had been moved into the new team early this year, adding that the company is confident it will make “significant progress in the overseas market this year.” Li added during an earnings call, that “2025 is our first year officially launching into the overall overseas market, and we will be building on capabilities that we have built in the domestic market.”
Why it matters: The comments were delivered as Li Auto flagged a lackluster outlook for the current quarter, expecting deliveries to reach just 93,000 vehicles in the first three months of this year, falling short of projections, Bloomberg reported. Meanwhile, the company’s annual profit plunged by nearly a third to RMB 8 billion ($1.1 billion) in 2024, dragging its shares on the Nasdaq down more than 4% as of market close on March 14.
Details: Li Auto has been working with a group of “high-quality and experienced authorized dealers” in Central Asia, the Asia-Pacific region, and several other markets and will increase its investments in Latin America and Europe, according to Li.
- The Chinese EV maker said it established directly operated service centers in Kazakhstan, Uzbekistan, and the United Arab Emirates (UAE) last year, followed by the opening of its first overseas research and development center in Munich in January, TechNode reported.
- “We’ll provide original spare parts and tech support to qualified after-sales partners so that our overseas customers can enjoy the same level of service that we provide to our domestic customers,” said Li, adding that the company is “confident of achieving major growth overseas this year.”
- New model launches are another growth pillar for Li Auto. The i8, its first all-electric sports utility vehicle, is slated for launch in July and will make its debut at the upcoming Shanghai Auto Show on April 23. The smaller i6 fully electric crossover will go on sale in the second half of this year.
Context: Li Auto delivered 56,190 cars, mainly extended-range hybrid vehicles, in the first two months of this year, representing a 9.3% growth from a year ago, and has been offering big discounts and an interest-free loan for its vehicle lineup this month. The management did not provide an annual outlook, but local media reported it aims to sell 700,000 vehicles this year, a jump of 40% from 2024.
