A temporary disruption in headlight supply reduced production of the Li Auto Li i6 by roughly 4,000 units during the second half of July — hitting the electric SUV that now accounts for nearly 70% of the company’s monthly deliveries.
The issue was disclosed on Monday by Li Auto’s Head of Product Line, Li Xinyang, who said in a Weibo post that the shortfall came against the company’s original production plan.
“Headlight supply and vehicle production have now returned to normal,” Li wrote, adding that the company is working with supply chain partners to “accelerate production and make up the shortfall” so that delivery timelines for existing order holders are not affected.
The executive opened on a milestone note, with Li confirming that the 160,000th i6 rolled off the production line last week.
“Thank you to all 160,000 customers for your trust and support,” he wrote.
Li Auto is expected to disclose monthly delivery figures next Saturday (August 1).
Bulk of Li Auto’s Volume
Production disruptions to the i6 carry outsized consequences for Li Auto.
The i6 SUV represented 21,453 of the total 30,895 vehicles delivered by the automaker in June, a 69.4% share, according to data published earlier this month by China’s Passenger Car Association (CPCA).
June marked the fourth consecutive month in which i6 deliveries exceeded 20,000 units.
Monthly volume climbed from 16,883 units in January to 24,198 in March before settling into a range just above 20,000 from April onward.
Deliveries began on September 27, 2025 — one day after the model’s launch at a starting price of 249,800 yuan ($36,780).
The i6 uses a 5C lithium iron phosphate battery with peak charging power exceeding 500 kW and a CLTC range of 720 km.
Those specifications have made the model a volume anchor for Li Auto at a time when several of its other nameplates face softer demand.
Sales Under Pressure
Li Auto’s deliveries fell 14.8% year-on-year in June, marking the second straight month of annual decline.
First-half deliveries totalled 193,472 vehicles, down 5.1% from the same period a year earlier.
The company is among a number of Chinese EV makers trailing their full-year sales targets at the halfway point, with completion standing just at 35.2% of a 550,000-unit target.
Financial results have reflected the strain.
Li Auto posted an unexpected net loss of 2.3 billion yuan ($339 million) in the first quarter, with gross margin compressing to 7.9% from 20.5% a year earlier.
Margin erosion across the lineup has intensified pressure on management to shift product mix and revive growth.
L Series Overhaul
To address slowing sales, Li Auto is refreshing its L series of extended-range models. Updated versions of the Li L9 and Li L8 are already on sale.
A next-generation Li L6 launched on July 16, adding a further option aimed at the high-volume segment of the market.
The L series refresh is designed to complement the i6’s contribution by broadening the company’s appeal across price points and powertrain types.
Extended-range vehicles, which pair a battery with a small combustion engine for charging, remain popular among Chinese consumers wary of range anxiety, and Li Auto built its early reputation on the format before expanding into pure-electric models.
Recovery of the roughly 4,000 i6 units lost to the headlight shortage will be critical in July delivery figures.
Any shortfall risks widening the year-on-year decline the company has recorded in recent months, particularly given the i6’s dominant share of total volume.
Management’s assurance that production has normalised suggests the company expects to absorb most of the impact within its existing supply chain framework, though final July delivery data — typically released in the first days of the following month — will confirm whether the catch-up effort succeeded.
European Expansion
Beyond stabilizing domestic output, Li Auto is preparing its first moves into overseas markets.
The company plans to make its European debut later this year with the i6 SUV, positioning the model as its lead offering for international buyers.
Job postings indicate the Netherlands will be part of the initial European rollout, following a path taken by several Chinese EV brands that have used the Dutch market as an entry point into the European Union.
An international launch adds another dimension to the i6’s importance within Li Auto‘s portfolio.
Domestic supply chain reliability — including the kind of headlight disruption disclosed this week — takes on greater significance once the same production lines serve both Chinese and European order books.
Strategic Shift
Separately, Li Auto has been restructuring its technology operations.
The company recently spun off its in-house AI chip business into a standalone entity, a move that allows the chip unit to pursue independent funding and partnerships while freeing Li Auto to concentrate resources on vehicle development and market expansion.
The spinoff follows a pattern seen across the Chinese EV industry, where automakers that invested heavily in vertical integration during the growth phase are now carving out non-core technology units to improve capital efficiency.
For Li Auto, the restructuring comes at a moment when preserving cash and defending margins have become more urgent priorities, as the first-quarter loss demonstrated.
