May's deliveries were Li Auto's highest single-month volume so far this year, though still well below last December's record 50,353 vehicles.

Li Auto (NASDAQ: LI) saw deliveries rebound to a new high for the year in May, after an unexpected dip the previous month.

The company delivered 35,020 vehicles in May, up 35.8 percent from April and up 23.85 percent year-on-year, according to data it released today.

May's deliveries were Li Auto's highest for a single month so far in the year, though still well below last December's record 50,353 vehicles.

So far this year, Li Auto has delivered 141,207 vehicles, up 32.54 percent year-on-year, according to data compiled by CnEVPost.

The company's cumulative deliveries since inception stood at 774,571 vehicles.

The weak performance at the start of the year means Li Auto will face challenges to reach its 2024 delivery target.

On March 22, Li Auto lowered its 2024 sales forecast to 560,000-640,000 from an original 650,000-800,000 at an investor meeting, 21jingji said in a May 16 report.

The lowered target implies a 50 percent to 70 percent year-on-year increase, considering Li Auto delivered 376,030 vehicles in 2023.

Li Auto is one of the major extended-range electric vehicle (EREV) players in China, with the main models on sale being the L-series EREVs, including the Li L6, Li L7, Li L8, and Li L9.

On March 1, Li Auto's first BEV model, the Li Mega MPV (multi-purpose vehicle), was launched at a starting price of RMB 559,800 yuan ($77,300). On the same day, the 2024 models of its L-series EREVs were also launched.

Li Auto management was initially very optimistic about the Li Mega, saying the model would challenge monthly sales of 8,000 units. However, initial acceptance of the model fell far short of expectations, forcing it to lower its expectations for full-year deliveries this year.

On May 20, Li Auto management said in an earnings call that it would not release an all-electric SUV model this year and that they would be rolled out in the first half of next year.

In a previous earnings call, the company said it would release three all-electric SUV models in the second half of 2024.

For now Li Auto seems to have high hopes for the Li L6, a five-seat SUV that was launched on April 18 and is the least expensive in its lineup, with a starting price of RMB 249,800.

Since deliveries began on April 24, Li Auto has delivered more than 15,000 Li L6s, setting a record delivery pace for the company's newly launched models, it said today.

“We are fully committed to securing the supply chain and ramping up production of Li L6 to ensure users receive their vehicles at the earliest possible opportunity,” said Li Xiang, Li Auto's founder, chairman and CEO.

“Sales of the 2024 Li L7, Li L8, and Li L9 continue to gain momentum, driven by the new pricing strategy we implemented,” Li added.

The new pricing strategy he referred to was Li Auto's significant price reduction on April 22 across its entire model lineup, except for the Li L6.

As of May 31, Li Auto had 487 retail stores in 144 cities and 374 servicing centers and Li Auto-authorized body and paint shops in 214 cities.

It has 426 supercharging stations with 1,888 charging stalls in China.

($1 = RMB 7.2418)

Some employees at Li Auto Beijing plant reportedly taking extra break as Li Mega sales remain weak