Li Auto slows down overseas expansion plan Compared with the previous plan, Li Auto's overseas expansion pace has significantly slowed down, mainly because it believes that more adequate preparations are needed for overseas markets. The complexity of the Middle East market and the fact that the new energy vehicle market is still in its infancy make the timing of Li Auto's expansion into the Middle East not yet mature. Li Auto sells in overseas markets through parallel exports, with parallel export sales accounting for 10% of total sales in 2023, which means Li Auto is not in a hurry to officially expand overseas. Facing fierce competition in the domestic new energy market, Li Auto's management has decided to focus resources on capturing domestic market share. Li Auto believes that it will be difficult for Chinese new energy vehicle manufacturers to enter the U.S. and Western European markets in the short term, and these markets account for the vast majority of the global luxury car market. The U.S. and the EU have successively introduced policies to impose additional tariffs on Chinese electric vehicles, further increasing the difficulty for Chinese automakers to export. Li Auto's management hopes that overseas models will be different from domestic models, offering designs and configurations that better meet the needs of local consumers.