Li Auto’s Q4 Earnings Conference Call: Maximizing Cost Efficiency in Parts Procurement and Reducing External Supply Chain Pressure
On March 12, 2026, Li Auto released its Q4 earnings report, highlighting a total revenue of 28.8 billion yuan for the fourth quarter of 2025, marking a decrease of 35% compared to the previous year, despite a 5.2% year-over-year increase in deliveries.
Following the earnings report, Li Auto’s management held a conference call, featuring CEO Li Xiang, CFO Liu Jing, and other senior executives. They discussed the results and responded to questions from analysts.
The main topics addressed during the conference call included:
- Tim Hsiao, an analyst from Citigroup: He posed two main questions. The first focused on the optimization of the supply chain: Li Auto plans to close 100 dealerships as part of its strategy to enhance supply chain efficiency and improve delivery performance. He also inquired about the timeline for expanding dealership networks.
- The second question revolved around product offerings: Can the management team share insights on the market positioning and pricing strategies for the new models, L9 and L9 Ultra?
Li Xiang’s Response: He confirmed that the company aims to improve its delivery efficiency and that any changes in the supply chain will be made with careful consideration. Li Auto will focus on enhancing its market presence and ensuring product competitiveness through effective pricing strategies.
Liu Jing’s Insights: He highlighted the importance of maintaining stable prices and ensuring supply chain reliability. He indicated that the company’s focus would be on improving its operational efficiency and adjusting to market demands.
Regarding the product launch schedule for the L9 series, Li Auto plans to officially launch the new models in the second half of this year. The L9 has been developed as an embodiment of Li Auto’s strategy to integrate smart technology with vehicle performance and user experience.
In terms of future revenue projections, Li Auto aims to achieve revenue targets that exceed last year’s figures by 20% in 2026. Management emphasized their commitment to reaching this goal through strategic initiatives.
Overall, the earnings call provided a comprehensive overview of Li Auto’s financial performance, strategic adjustments, and future outlook as they continue to navigate the evolving automotive market.
This information is part of Li Auto’s ongoing efforts to adapt to market conditions and optimize operational efficiency.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/li-auto-q4-earnings-call-highlights-strategic-moves-amid-pricing-pressures-in-the-electric-vehicle-market/
