Li Auto Inc. delivered 28,529 vehicles in August 2025, reaching a cumulative 1,397,070 units, as the company prepares to launch its new Li i6 battery electric SUV and the OTA 8.0 software update, signaling a critical transition in its market strategy.

Li Auto Inc. (NASDAQ: LI; HKEX: 2015) announced August 2025 vehicle deliveries of 28,529 units, contributing to a cumulative delivery total of 1,397,070 as of August 31, 2025. This announcement precedes a strategic push into the battery electric vehicle (BEV) segment with the upcoming launch of the Li i6 SUV and a significant software upgrade, OTA 8.0, in September.

The Event in Detail

Li Auto reported delivering 28,529 vehicles in August 2025. While this marks a substantial volume, it represents a 15.29% month-on-month decline from the 30,731 units delivered in July. The company's total cumulative deliveries have now surpassed 1.39 million vehicles. In September, Li Auto is set to unveil the Li i6, a new battery electric SUV positioned to compete in the mass-market segment with a price range between RMB250,000 and RMB300,000. Concurrently, the release of OTA 8.0 will introduce the VLA Driver large model to all Li AD Max users and an evolved Li Xiang Tong Xue Agent, aiming to enhance assisted driving capabilities and user experience.

Analysis of Market Reaction and Strategic Transition

Li Auto's August delivery figures arrive at a pivotal moment as the company navigates a strategic transition from its successful hybrid electric vehicle (HEV) models to a stronger focus on BEVs. The month-on-month decline in deliveries reflects broader pressures, including waning demand for hybrid vehicles in a market increasingly favoring pure BEVs. This trend is underscored by the performance of Li Auto's L-series extended-range electric vehicles (EREVs), which accounted for over 90% of July deliveries but experienced year-on-year declines ranging from 40% to 53%.

Earlier in the year, the initial reception of the company's first major BEV, the Li i8, was tepid, leading to a relaunch and price adjustments. This experience highlights the challenges of penetrating a highly competitive BEV market dominated by players like BYD and Tesla. Li Auto's Q3 2025 delivery guidance of 90,000–95,000 units, which represents a 37.8%–41.1% year-on-year decline, further illustrates the difficulties in managing this transition without cannibalizing its existing hybrid segment.

Despite these challenges, Li Auto's Q2 2025 financial results showed resilience, with total revenues reaching RMB30.2 billion (US$4.2 billion), a 16.7% sequential increase from Q1 2025, alongside a gross margin of 20.1% and a 76.7% year-on-year operating income growth.

Broader Context and Implications

The Chinese new energy vehicle (NEV) market remains fiercely competitive, with BYD holding over 50% market share in H1 2025 and Tesla maintaining a premium presence. Li Auto's strategy to compete involves significant investment in both product innovation and infrastructure. The company operates an extensive network of 543 retail stores in 156 cities, 536 servicing centers in 222 cities, and 3,190 super charging stations equipped with 17,597 charging stalls. This infrastructure is crucial for supporting sales, after-sales service, and charging needs, strengthening its market positioning.

Furthermore, the focus on advanced software, exemplified by the VLA Driver large model and the AI-powered Li Xiang Tong Xue Agent, aims to differentiate Li Auto in a market where consumer preferences are shifting towards AI-driven features and seamless ecosystem integration. The Li i6 itself boasts impressive specifications, including a CLTC range of 660–720 km, 800V architecture, and 5C supercharging capabilities, positioning it as a strong contender in the mid-to-large SUV segment.

Expert Commentary

Financial analysts view Li Auto's August delivery numbers as indicative of strong market demand and production capabilities. They anticipate that the launch of the Li i6 SUV and the OTA 8.0 update will enhance the company's competitive edge and potentially attract a broader customer base. However, analysts also caution that Li Auto must effectively navigate potential risks related to vehicle quality, profitability, and intense market competition.

Market research analysts highlight that Li Auto's August delivery performance, coupled with its new product launches and software innovations, signals a strategic pivot towards premiumization and ecosystem dominance. They believe that the company's infrastructure investments, AI integration, and pricing agility are key factors that will allow it to capitalize on the robust Chinese EV market.

Looking Ahead

The performance of the Li i6 will be a critical indicator of Li Auto's ability to successfully transition to a BEV-centric strategy. Investors will closely monitor the adoption rates of the new SUV and the impact of the OTA 8.0 update on customer experience and brand loyalty. With substantial cash reserves of RMB110.7 billion, Li Auto possesses the financial capacity to execute its strategic vision. The company aims for full electrification by 2027, and its ability to stabilize monthly deliveries of new BEV models to levels of 18,000-20,000 units will be crucial for restoring investor confidence and sustaining growth in a rapidly evolving and competitive global EV market. Upcoming economic reports, competitor actions, and consumer sentiment regarding new BEV technologies will be key factors to watch in the coming weeks." , image_alt_tags=[