Chinese automaker Li Auto announced on Sunday that it sold 27,668 new energy vehicles (NEV) in January, representing a 7.6% year on year decline.
The figures fell by 37.5% sequentially from the 44,246 units delivered in December as consumers in China rushed to take advantage of the incentives before being scaled down on the first day of 2026.
January 2026 marks the eighth consecutive month of year over year sales decrease for the Beijing-based company as it prepares to expand across the Middle East and European regions later this year.
Last year, Li Auto delivered a total of 406,343 vehicles, failing to meet its revised 640,000-unit goal by 36.5%.
The 2025 guidance was initially 700,000 vehicles, before being lowered in May.
The automaker aims to sell approximately 550,000 vehicles this year, up 35.4% compared to 2025 results, as reported last week by the Chinese media outlet 36kr.
Product Strategy
Li Auto is set to expand and upgrade its portfolio this year.
The Chinese company plans to release one fully electric SUV, joining the Mega MPV, the i8 six-seat SUV, and the i6 five-seat midsize SUV — all launched in China between May and September last year.
Cumulative deliveries of the flagship MPV surpassed 30,000 units exactly a week ago, the company announced on the social media platform Weibo.
The i6 model continues to face production constraints due to battery supply limitations, causing delays in its deliveries, even four months after its launch.
Last Thursday, the brand told some SUV buyers that they will face a 4-6 week delivery wait, according to a statement shared by the Chinese media outlet Yiche.
Li Auto will shift its product strategy back to EREVs, aiming to “reclaim its leading position” in the segment, a senior executive of the automaker told 36kr two weeks ago.
According to the report, the L-series EREV SUVs will get substantial upgrades to chassis and vehicle control systems, with the L9 model as the priority.
Internal Meeting
Li Auto‘s founder and CEO Li Xiang reaffirmed the company’s emphasis on AI during an all-hands internal meeting last Monday, the Chinese media outlet 21jingji reported.
The executive emphasized that this year is the final opportunity for companies to become AI leaders, adding that Level 4 autonomous driving won’t be achieved until 2028.
However, employees expressed frustration with the CEO’s AI focus through Li Auto‘s internal social media platform, arguing that the brand should prioritize its immediate challenges.
“Right now, AI-related content isn’t my priority, nor is it the most urgent matter. I’d rather hear reflections and reviews on the company’s top-priority tasks at this stage, along with Li Auto‘s overall strategy for 2026,” 21jingji stated, citing an employee.
Due to its continued sales decline, Li Auto is expected to shut down about 100 underperforming stores in China in the first half of this year, the local media outlet Sina Finance reported last Monday.
However, Li Auto denied the figures of this report, according to the China Securities Journal, highlighting that it will target the closure of a small number of low-efficiency retail stores this year.
The company, cited by the Chinese media outlet Yicai, explained that the strategy is “part of routine business adjustments and will not impact overall operations.”
ADAS Update
Last week, Li Auto began rolling out the major AD Pro 4.0 update to its advanced assisted-driving system (ADAS), with Horizon Robotics’ Journey 6M chip.
Enabled by 128 TOPS of computing capability, it became the industry’s first end-to-end city Navigate on Autopilot (NOA) solution.
The update was developed by the Chinese automaker in collaboration with the self-driving technology company QCraft.
Last May, Li Auto upgraded the ADAS in the L6’s AD Pro variant to the Horizon Journey 6M chip as part of a model refresh aimed at increasing sales.
International Markets
As part of its international expansion, Li Auto entered Egypt, Azerbaijan, Kazakhstan, and Uzbekistan last year, with its L6, L7, and L9 EREV SUVs.
Approached by EV, a company spokesperson stated that the brand aims to further expand in Central Asia this year, while also entering Middle Eastern and European markets.
Amid an EV deal between Canada and China, there was no mention of Canada or North America in its future expansion plans in the statement.
“2025 marks Li Auto‘s inaugural year for international expansion. The company has officially entered four markets — Uzbekistan, Egypt, Kazakhstan, and Azerbaijan — selling the L6, L7, and L9 models through more than 10 retail and service locations overseas,” a company spokesperson told EV last week.
“In 2026, Li Auto will deepen its presence in Central Asia while expanding into the Middle East and Europe,” the spokesperson added without mentioning any plans to expand to Canda in the near term.
