Li Auto Posts 4 Billion Yuan Net Loss in First Half as Revenue Drops 13%
AM730 · 2 SOURCESabout 2 hours ago2 MIN
Summary
Li Auto (ticker: 2015) has released its interim results for the first half of 2026, revealing a significant deterioration in financial performance. The electric vehicle maker swung from a net profit of 17 billion yuan in the same period last year to a net loss of 40 billion yuan. Revenue declined 13.4% year-on-year to 486 billion yuan, driven primarily by lower average selling prices due to product mix changes and reduced vehicle deliveries . The company's gross margin more than halved, dropping to 9.5% from 20.3% previously, reflecting intensifying competition in China's NEV market.
Key Points
- Revenue fell to 486 billion yuan from 562 billion yuan year-on-year, a decline of 13.4%, with vehicle sales revenue down 14.9% to 456 billion yuan
- Gross profit plummeted 59.2% year-on-year to 46 billion yuan, while vehicle gross margin dropped to 7.8% from 19.6%
- Vehicle deliveries reached 193,472 units in the first half, with cumulative deliveries hitting 1,733,687 units by June 30, 2026
- R&D expenses remained relatively stable at 55 billion yuan, up 3.3% from 53 billion yuan a year earlier
- The company maintained leadership in China's NEV segment priced above 200,000 yuan with a 12.1% market share, ranking first among Chinese brands
Why It Matters
The sharp decline in Li Auto's profitability highlights the growing pressure facing Chinese EV makers as competition intensifies and price wars continue to erode margins across the industry. While Li Auto maintains its market leadership position, the company's ability to return to profitability while sustaining investment in research and development will be crucial for its long-term competitiveness against both domestic rivals and international automakers expanding into China .
The sharp decline in Li Auto's profitability highlights the growing pressure facing Chinese EV makers as competition intensifies and price wars continue to erode margins across the industry. While Li Auto maintains its market leadership position, the company's ability to return to profitability while sustaining investment in research and development will be crucial for its long-term competitiveness against both domestic rivals and international automakers expanding into China .