Li Auto's launch event in Egypt
Image Credit: Li Auto

China’s Li Auto Expands to Three New Markets Amid Domestic Pressure

Li Auto announced on Wednesday that it has launched into three new markets, as the Chinese carmaker comes under growing pressure at home.

The company founded and led by Li Xiang has entered Egypt, Kazakhstan and Azerbaijan, two months after opening its first facility outside of China — in Tashkent, Uzbekistan.

Li Auto introduced its L series, extended-range electric vehicles (EREV) in the three markets. The Li L6, Li L7 and Li L9 are all sport utility vehicles.

The brand stated on Weibo that it will “provide overseas customers with official warranty services, professional after-sales support, and continuous OTA (Over-the-Air) technology updates.”

Li Auto is entering international markets through local distributors.

It has partnered with Allur Group and Doscar Group in Kazakhstan. Fully operational showrooms are already open in key cities such as Almaty and Astana.

In Egypt, the company has signed an agreement with GB Auto, which also represents Chinese automakers Chery, Changan and subsidiary Deepal, Great Wall Motors and its sub-brand Haval.

The brand, which held a launch event at the Baron Palace, will have two shopping mall stores in Cairo.

Its presence in Azerbaijan will be promoted by Efendiler Auto, with a retail center opening in Baku.

Li Auto’s Positioning in the Market

Last month, local media outlet 36Kr reported that the company had acknowledged it was falling behind competitors, which have aggressively expanded overseas over the past two years, while Li Auto’s international plans stalled.

The company wavered on when and how to expand abroad, with Li Xiang himself stating in 2023 that the brand “would not enter overseas markets before 2025.”

Before these market entries, Li Auto vehicles were shipped to Russia and in the Middle East through parallel export channels.

New restrictions in Russia and Central Asian markets have disrupted the model.

Earlier this year, the brand said that it would prioritize the Middle East, Central Asia, and Europe in its expansion phase.

Additionally, Li Auto said on Wednesday that its “global layout is flourishing on multiple fronts,” including the established R&D centers in Germany and the United States.

The company plans to design new models for the 2026 launch to meet overseas regulatory standards.

After a strategy review, the company refocused on a model strategy adjustment, an accelerated product roadmap, and R&D priorities, including AI development.

Earlier this week, Li Auto secured a permit for Beijing’s intelligent connected vehicle test roads, which allows it to conduct testing of vehicles with SAE’s Level 3 autonomy.

Slow Demand in China

Li Auto‘s two recent fully electric models — the six-seat Li i8 SUV and the five-seat Li i6 — had weaker-than-expected receptions.

Competition is also intensifying in the hybrid segment, especially in extended-range electric vehicles — a powertrain that Li Auto has traditionally focused on — as government incentives for EV adoption slow down.

Last month, the brand delivered 33,181 vehicles in China, a decline of 32% year over year.

Deliveries have been under last year’s numbers for six months in a row, and have remained stable below 40,000 units since then.

According to 36Kr, the company is moving to a two-year platform cycle — down from the previous four years between each model refresh — and has already enlisted suppliers to help meet this accelerated schedule.

Matilde is a Law-backed writer who joined CARBA in April 2025 as a Junior Reporter.