Li Auto swings to loss as competition intensifies

Chinese electric-vehicle maker Li Auto reported a second-quarter operating loss of RMB 2.3 billion ($342 million), reports Caixin. This comes as intensifying competition and shifting consumer demand weighed on vehicle deliveries.

Revenue for the three months ended June 30 fell 15.1% year-on-year to RMB 25.7 billion, while quarterly deliveries dropped 11.5% to 98,000 units.

The second-quarter operating loss marks a stark reversal from a year earlier, when the Beijing-based company recorded a RMB 830 million profit. The automaker was once a darling of China’s EV sector, achieving full-year profitability in 2023 by dominating the niche for extended-range electric vehicles. While the company narrowed its net loss to RMB 1.7 billion from the first quarter and saw its gross margin recover to 11%, it is still struggling to regain its previous momentum.