China’s Li Auto said its net profits more than halved year-on-year to RMB 1.1 billion ($151.5 million) in the second quarter,Watch The Florist Online eroded by a lower average selling price as competition between the electric vehicle startup and larger rivals, especially Huawei, remains intense. U.S.-listed shares of the Chinese automaker tumbled 16.1% on Wednesday following the release of the earnings report. Revenue reached a record RMB 31.7 billion in the April-June quarter thanks to strong sales of Li Auto’s extended-range hybrid EVs (EREVs), although the vehicle margin also declined to 18.7% from 21% a year ago and 19.3% a quarter earlier.
The L6 crossover, Li Auto’s cheapest model launched in April at a starting price of RMB 249,800, accounted for roughly a third of its quarterly deliveries of 108,581 units in the three months ended June 30. Meanwhile, rival Huawei said its Harmony Intelligent Mobility Alliance delivered a total of 106,351 EVs over the same period, and more than 100,900 Aito M7 crossovers were delivered from January to mid-June, making it the top-selling model of all kinds by a young Chinese EV maker. Li Auto also lowered its annual delivery guidance to 500,000 units, down from the 560,000 units previously guided, citing concerns over slowing demand and pricing pressure. [TechNode reporting, Li Auto results]
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