Li Auto doesn't want to be the frog in the warm water.

As the most stable brand among "NIO, XPENG, and Li Auto", Li Auto has, in recent years, relied on its extended - range technology and the positioning of "family - friendly cars". It not only consistently ranked first in sales among new - energy vehicle startups but also was the first to achieve annual profitability, inspiring many "players" to follow suit.

However, in June, with a sales volume of 36,000 vehicles, there was a 24% year - on - year and an 11% month - on - month decline respectively. Li Auto's once - renowned "stability" is now being diluted by latecomers.

Picture/Sales volume of Li Auto in June 2025. Source/Screenshot from Internet and New Energy Outlook

Leapmotor, with its "half - price Li Auto" strategy, won the sales championship among new - energy vehicle startups for four consecutive months from March to June this year. The M series under AITO, leveraging the dual advantages of family and business use, has firmly captured the middle - class market, with a sales volume of 45,000 vehicles in June.

The window of opportunity for the extended - range market is narrowing. Consumers' acceptance of pure - electric vehicles is gradually increasing, and the infrastructure is also improving. What was once a "safe zone" has become a "comfort zone".

Facing this situation, Li Auto is betting on pure - electric vehicles to break the deadlock.

According to its official plan, on July 17th, the first model of Li Auto's pure - electric i series, the i8, will start pre - orders, and it will be officially launched on July 29th. However, on July 14th, the interior of the Li Auto i8 was leaked, and subsequently, Li Auto's official account generously released high - definition new interior pictures.

Picture/Interior picture of Li Auto i8. Source/Screenshot from Internet and New Energy Outlook

It seems that the Li Auto i8 can't wait to become the springboard for Li Auto to break out of the comfort zone. Can it achieve its goal?

1. After the advantages of extended - range vehicles are gradually weakened, Li Auto has slowed down

By precisely targeting family users and adopting a differentiated strategy with extended - range technology, from the monthly sales of the Li ONE exceeding 10,000 units to the phenomenal sales of the L series, Li Auto has been leading the way in the new - energy vehicle market.

In 2023, Li Auto's annual sales volume reached 376,000 vehicles, a year - on - year increase of 182%. This not only helped it claim the annual sales championship among new - energy vehicle startups for the first time but also made it the first brand among Chinese new - energy vehicle startups to turn a profit, with an annual net profit of 11.8 billion yuan.

Picture/Comparison of Li Auto's sales volume from 2022 to 2023. Source/Screenshot from Internet and New Energy Outlook

In the following year, Li Auto, which had only been delivering products for five years, continued to top the sales list among new - energy vehicle startups with an annual cumulative sales volume of over 500,000 vehicles. At that time, its sales growth rate was clearly faster than that of Tesla, which took ten years to reach the annual sales target of 500,000 vehicles in the Chinese market.

Picture/Li Auto's sales volume in 2024. Source/Screenshot from Internet and New Energy Outlook

"I chose Li Auto for its large space and extended - range technology," said Mr. Zhang, an owner of the Li L9, voicing the thoughts of many users. "When my family goes on a long - distance trip, there's no range anxiety at all. The in - car configuration is also rich, and both the elderly and children are comfortable."

Ms. Li, an owner of the Li L7, was impressed by the "concept of home". "The refrigerator, color TV, and big sofa are so practical for our family - centric trips."

However, the market is ever - changing. Now, Li Auto seems to be in a development bottleneck.

On June 27th, just before car companies released their June sales data, Li Auto suddenly lowered its delivery forecast for the second quarter of this year, from the previous range of 123,000 - 128,000 vehicles to about 108,000 vehicles.

Picture/Li Auto announces the downward adjustment of Q2 delivery forecast. Source/Screenshot from Internet and New Energy Outlook

On the same day, Li Auto announced a major adjustment to its organizational structure. It integrated the R & D and supply group and the sales and service group into the newly established "Intelligent Vehicle Group", and the personnel appointments were also finalized.

At the beginning of July, Li Auto released its first - half sales data. The cumulative sales volume was 203,900 vehicles, still showing a positive growth of 7.8% compared with the same period last year. However, compared with Leapmotor's 155.8% and XPENG's 279% year - on - year growth, its growth weakness is very obvious.

Picture/Cumulative sales volume of some car companies in H1 2025. Source/Screenshot from Internet and New Energy Outlook

Why is the competitiveness of the L series of extended - range products, which once accounted for half of Li Auto's business, declining?

The reasons behind this are worth pondering. On the one hand, the extended - range vehicle market is no longer exclusive to Li Auto. Brands such as AITO, Avatr, and Deepal have all targeted the L series and launched competing products at various price points, squeezing Li Auto's market share from both the high - end and low - end, diverting a large number of family users.

On the other hand, the "moat" of extended - range technology is being continuously eroded. With the iteration of fast - charging technology and the improvement of the charging network, the advantage of "being able to use both gasoline and electricity" in extended - range vehicles is no longer unique. Data from the China Charging Alliance shows that in May this year, the member units within the alliance reported a total of 4.083 million public charging piles. From June 2024 to May 2025, an average of about 86,000 public charging piles were added per month.

Picture/Statistics of the number of public charging piles from 2024 to May 2025. Source/Screenshot from Internet and New Energy Outlook

Most consumers admit that with the continuous improvement of range and power consumption advantages, their need for extended - range vehicles is gradually weakening. "I chose an extended - range vehicle before because I was worried about the lack of charging piles and insufficient range. Now, there are charging piles everywhere, fast - charging is quick, and the range of pure - electric vehicles has also increased. In the end, pure - electric vehicles are more cost - effective."

2. From "stable" to "urgent", Li Auto has woken up

In fact, Li Auto's current bottleneck is closely related to its long - term "conservative strategy".

In the past few years when the new - energy vehicle market was rapidly evolving, Li Auto might have been the most envied among all new - energy vehicle startups. Its market share was steadily expanding, and its development was in a good state. However, this also seems to be a hidden concern that Li Auto can't easily shake off. While playing the "stable" card, it has also been a bit slow at critical junctures.

The most direct manifestation is the slow pace of configuration upgrades. Looking at the Li ONE and the current four models, the L6, L7, L8, and L9, the interior layout has always been the iconic dual - screen and a simple center console. There has been little upgrade in the design language.

At the same time, Li Auto has also been a bit behind in adopting the "zero - gravity seat" configuration. Take the Li L9, which is priced above 400,000 yuan, for example. It wasn't until the model was updated in May this year that it finally installed a quasi - zero - gravity seat, with the second - row seat adjustable to a maximum zero - gravity reclining position of 140 degrees.

Picture/Li L9. Source/Screenshot from Internet and New Energy Outlook

The conservative approach to product iteration is even more passive.

In December 2019, Li Auto's first model, the ONE, officially started deliveries. Relying on "extended - range technology + large space", it quickly met the market demand and won the sales championship in the Chinese new - energy SUV market the following year. However, since then, there has been a lack of a true next - generation product from Li Auto. The four L - series models are all derived from the concept of the Li ONE.

Picture/Li ONE. Source/Screenshot from Internet and New Energy Outlook

It should be noted that as the new - energy vehicle market develops, consumers' needs have also evolved, far exceeding the "basic family use" level.

"In the past, when buying a car, I mainly considered space and comfort. Now, I value intelligent driving and the intelligence level of the in - car system more. After all, technological configurations can make driving easier and more interesting."

"Two years ago, when I changed my car, I only cared about whether the range was enough for long - distance trips and whether the space could fit a baby stroller. Now, these are just basic requirements. Although Li Auto has done well in the family - use scenario, it still lags behind in the intelligent - scenario linkage." Many consumers admitted.

Realizing this, Li Auto has started to take the initiative. On the one hand, it is strengthening its extended - range vehicle market base. In April last year, it launched the Li L6 to fill the market gap below 300,000 yuan. On the other hand, it is accelerating its layout in the pure - electric vehicle market. The Li MEGA, as Li Auto's true next - generation product, was launched in the first half of last year.

Picture/Li L6. Source/Screenshot from Internet and New Energy Outlook

According to Li Auto's current product plan, two pure - electric i - series products will be launched in the second half of the year - the i8 in late July and the i6 in September.

Picture/Li Auto i8 - Li Auto i6. Source/Screenshot from Internet and New Energy Outlook

Everyone knows the story of the frog in boiling water. However, when you're in it, it's often difficult to notice the change in water temperature. Now, Li Auto has clearly felt the rising water temperature. The transformation from "stable" to "urgent" might be the beginning of its attempt to break out of the comfort zone. Whether this turnaround can succeed depends on whether the pure - electric i series can meet the market's expectations.