Li Auto forecasts first-quarter sales drop as competition sharpens in Chinese EV market, reports record profit
- Beijing-based carmaker says deliveries in the January to March period could decline by 21.9 to 24.1 per cent
- Posts 104.5 per cent increase in net income for the three months ending December 31
The Beijing-based carmaker said on Monday that it could deliver between 100,000 and 103,000 EVs in the January to March period, a decline of 21.9 to 24.1 per cent from the 131,805 units delivered in the previous quarter.
The bearish forecast was revealed after Li Auto reported a record quarterly profit that beat analysts’ expectations. The company posted a net income of 5.75 billion yuan (US$799 million) in the three months ending December 31, up 104.5 per cent quarter on quarter. It also more than doubled a median forecast of 2.8 billion yuan made by analysts in a Bloomberg survey.
“Premium EV makers like Li Auto are under pressure to achieve a high sales volume now that consumers are becoming more cautious amid a slowing economy,” said Gao Shen, an independent analyst in Shanghai.
Li Auto delivered 376,030 premium EVs to mainland Chinese customers in 2023, a jump of 182 per cent year on year that exceeded its sales target of 300,000. The company broke its monthly sales record for nine consecutive months between April and December.
