Li Auto unveils scaled-back car purchase incentives

Li Auto's move comes as the price war in China's auto industry eases, after some luxury brands have rolled back steep discounts. (A Li L6 on display at the April 2024 Beijing auto show. Image credit: CnEVPost) Li Auto (NASDAQ: LI) has announced scaled-back purchase entitlements, amid the easing price war in the Chinese auto market. Customers who buy Li Auto's L-series models between July 24-31 can get a limited-time offer worth up to RMB 12,300 ($1,700), the company said today on Weibo. Li Auto's current models include the L-series extended-range electric vehicles (EREVs) -- Li L6, Li L7, Li L8, Li L9 -- as well as the all-electric Li Mega MPV (multi-purpose vehicle). In its July 2 announcement of purchase incentives valid until July 15, the L series and the Li Mega were offered incentives of up to RMB 17,000. The latest offer announced today means that Li Auto has stopped offering official discounts on the Li Mega while scaling back the amount for the L series. Specifically, the latest purchase offer announced by Li Auto today retains the RMB 10,000 worth of purchase rights and 0 percent down payment financial incentives previously offered. The company has reduced the exclusive gift package from the previous maximum of RMB 7,196 to RMB 2,399. Li Auto's move comes at a time when the price war in China's auto industry is easing, after a number of luxury brands have scaled back significant discounts. BMW pulled out of the price war in China's auto market by increasing the price of its entire model range by at least RMB 30,000, the Securities Times said in a July 16 report. On July 17, local auto media outlet Auto Home reported that Nio (NYSE: NIO) would scale back its discounts on some models on July 22, with the discounts on both the ET5 and ET5 Touring reduced by RMB 3,000, and the discounts on the ES6 and EC6 reduced by RMB 5,000. As of now, Nio has not denied the report, but has also not publicly announced the reduced offers on its social media channels. Li Auto delivered 47,774 vehicles in June, up 46.66 percent year-on-year and up 36.42 percent from May, according to data released on July 1. In the second quarter, Li Auto delivered 108,581 vehicles, up 25.48 percent year-on-year and up 35.05 percent from the first quarter. So far this month, 30,200 Li Auto vehicles have been registered for insurance in China, according to CnEVPost's calculations based on its previously published weekly figures. ($1 = RMB 7.2389) China Jul EV sales preview: Deutsche Bank expects Nio at 21,000 units, Xpeng 10,000, BYD 300,000 (Li Auto car purchase incentives announced on July 25, 2024.)