Li Auto Inc. saw a 25.5% year-over-year rise in Q2 2024 deliveries to 108,581 units, driving revenue to RMB 31.7 billion, despite a 52.3% drop in net income due to rising costs.

Li Auto Q2 Results Show Strong Vehicle Deliveries Amid Profit Pressures

Li Auto Inc. saw a 25.5% year-over-year rise in Q2 2024 deliveries to 108,581 units, driving revenue to RMB 31.7 billion, despite a 52.3% drop in net income due to rising costs.

Li Auto Inc. reported a robust year-over-year increase in vehicle deliveries for Q2 2024, reaching 108,581 units, a 25.5% rise, bolstered by its expanded presence across China. However, despite this strong sales performance, the company’s financial results reflected a mixed picture, with profits under pressure due to rising costs and competitive challenges.

Total revenue for the quarter rose by 10.6% year-over-year to RMB 31.7 billion ($4.4 billion), driven largely by vehicle sales, which accounted for RMB 30.3 billion ($4.2 billion).

However, vehicle margins declined to 18.7% from 21.0% a year earlier, reflecting changes in product mix and pricing strategies, which also contributed to a decrease in gross margin to 19.5%.

Net income dropped by 52.3% year-over-year to RMB 1.1 billion ($151.5 million), despite an 86.2% improvement from the previous quarter. The company cited increased operating expenses, particularly in research and development, as key factors in the reduced profitability.

Looking ahead, Li Auto anticipates a significant boost in vehicle deliveries for Q3 2024, projecting between 145,000 and 155,000 units, as it continues to innovate and expand its product offerings in China’s competitive new energy vehicle market.

Source: Li Auto Inc. Reports Q2 2024 Financial Results: Unaudited Highlights

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