Li Auto is offering discounts ranging from RMB 35,000 to RMB 38,000, depending on the model, local media said.

(Image credit: CnEVPost)

Li Auto (NASDAQ: LI) is offering significant discounts on three models on sale -- Li L7, Li L8, and Li L9 -- as part of a year-beginning special offer, according to a local media report.

The discounts offered by Li Auto range from RMB 35,000 ($4,880) to RMB 38,000, depending on the model, Wallstreetcn said in a report today.

In addition, for vehicles registered in Shanghai, Li Auto will offer an additional RMB 10,000 subsidy, a benefit that will end in late January, according to the report.

Li Auto's three models currently on sale are extended-range electric vehicles (EREVs), which are essentially plug-in hybrid vehicles (PHEVs).

Before 2023, Shanghai was offering free license plates for new energy vehicles (NEVs), including battery electric vehicles (BEVs), PHEVs and EREVs.

Starting January 1, 2023, the city no longer offered free license plates for PHEVs, including EREVs. Customers registering a Li Auto vehicle in Shanghai will first need to spend about RMB 100,000 to obtain a fuel-vehicle license plate through an auction.

Li Auto will launch a facelift of the Li L9 in March, as well as the Li Mega MPV (Multi-Purpose Vehicle), the Wallstreetcn report noted.

Notably, Li Auto's sales of 4,300 units in the first week of 2024 were surpassed by Huawei-backed Aito with 5,900 units, Wallstreetcn added.

Li Auto said yesterday that its 2024 models will be released in March and deliveries will begin in the same month, while customers who buy the 2023 models will be eligible for purchase discounts.

The company's statement yesterday did not provide further details, including whether all three models will see the launch of the facelift in March or the exact amount of the discounts.

Earlier today, another local media outlet, 36kr, quoted a Li Auto salesperson as saying that the 2023 models are being offered up to RMB 33,000 in discounts.

Aside from preparing for the model switch, Li Auto is also offering these discounts because its order stock is running out, according to 36kr.

Older versions of Li Auto's three models will be discontinued in the second quarter, after it launches the facelifts in March, 36kr said in its report today, citing supply chain sources.

Earlier today, Tesla (NASDAQ: TSLA) lowered the prices of nearly its entire Model 3 and Model Y lineup in China.

Prices for both versions of the Model 3 were cut by as much as nearly 6 percent, and prices for two of the three versions of the Model Y were cut by as much as nearly 3 percent, according to a report from CnEVPost.

($1 = RMB 7.1669)

Li Auto reportedly to discontinue older models in Q2 after facelifts launched in Mar