Chinese electric vehicle maker Li Auto witnessed its revenue in the fourth quarter last year increase by 66.2% year-on-year to 17.65 billion yuan ($2.54 billion). Its 2022 revenue was 45.29 billion yuan ($6.53 billion), up 67.7% year-on-year.
However, its annual operating loss was 3.65 billion yuan ($526 million). With 133,200 vehicles delivered last year, the average loss per unit was 27,400 yuan ($3,950).
On the earnings conference call, Li Xiang, CEO of Li Auto, shared that while over 20,000 vehicles were delivered in December, their delivery plan was radical and exerted excessive pressure on the supply chain. With the launch of multiple models last year, new challenges emerged for the company and its suppliers spanning planning, production, sales, and delivery.
Li Auto targets to deliver between 52,000 to 55,000 vehicles in the first quarter of 2023, up between 64% and 73.4% year-on-year. With both the L7 and L8 models available on the market, the company projects to deliver over 30,000 vehicles per month in the second quarter.
In 2023, Li aims to gain 20% market share of the SUV market segment within the price range of 300,000 yuan ($43,267) to 500,000 yuan ($72,112). This goal is more than double its 9.5% market share of the same segment in 2022.
Models priced between 200,000 yuan ($28,851) and 300,000 yuan ($43,267) are an area of focus for the company’s business expansion strategy. Li commented that these models require a greater delivery volume to reach the breakeven point.
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Furthermore, Li pointed to the importance of charging convenience for the future of pure electric vehicles, “It is very important to achieve a charging experience similar to that of fuel vehicles. For that, infrastructure is key. Ultra-high voltage fast charging is the solution.”
For electric vehicle companies, the upcoming decline in lithium prices this year is undoubtedly a great benefit. Ma Donghui, President of Li Auto, said, “We believe that battery cost reduction is good news for improving the competitiveness of electric vehicles, as well as for battery makers. Regarding the purchase price of batteries, negotiations are still under way with our partners.”
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