Li Auto Files for Production of 3 Existing Models at New Beijing Plant to Address Sales Bottleneck Caused by Capacity Shortage

Trade News 1063 Views

“Li Auto Files for Production of 3 Existing Models at New Beijing Plant to Address Capacity Shortage Impacting Sales Growth”

Li Auto Files for Production of 3 Existing Models at New Beijing Plant to Address Sales Bottleneck Caused by Capacity Shortage - Trade News - 1

Li Auto, headquartered in Beijing, is set to build its three existing models at a new plant in the city, in addition to its Changzhou plant in Jiangsu province. The move comes as capacity shortages have become a major constraint on Li Auto’s sales growth potential.

China’s Ministry of Industry and Information Technology (MIIT) has included Li Auto’s three existing models—the Li L7, Li L8, and Li L9—in its latest catalog of models open for public comment starting from July 14.

While the core specifications of these models remain unchanged, the production address has been updated to Li Auto’s new plant in Beijing’s Shunyi district.

Currently, Li Auto’s vehicles are extended-range electric vehicles (EREVs) produced at its Changzhou plant, which operates with six days of production and one day of maintenance per week. The plant has a weekly capacity of 7,500 units, with plans to increase it to 8,000 units per week from the second week of July.

The new Beijing plant, originally owned by Beijing Hyundai, is expected to commence production by the end of 2023. With a total investment of over 6 billion yuan ($840 million), it will have the capacity to produce 100,000 pure electric vehicles annually.

Li Auto Files for Production of 3 Existing Models at New Beijing Plant to Address Sales Bottleneck Caused by Capacity Shortage - Trade News - 2

Reports suggest that the Beijing plant is likely to be completed and begin production in August, manufacturing Li Auto’s first pure electric vehicle, internally codenamed W01, which has been named the Li MEGA.

Li Auto has experienced robust sales growth, surpassing 30,000 units for the first time and selling a record-breaking 32,575 units in June. The company aims to achieve sales of over 380,000 units for the year, surpassing its initial target of 300,000 units.

Furthermore, Li Auto plans to enhance production capacity at its Changzhou plant to ensure timely order delivery, while the previously planned third factory in Chongqing has been put on hold.

Li Auto remains committed to optimizing its production layout according to national industrial policies and its own development pace.

(Note: $1 = RMB 7.1338)