BlueWhale News reported on January 23 (by reporter Li Zhuoling) that Li Auto is planning channel adjustments.
On January 22, BlueWhale Auto learned exclusively from an informed source that Li Auto will subsequently close some low-efficiency stores. Currently, the company is still in the evaluation stage, and the number of stores to be closed remains unclear. "The quantity is not the focus; more consideration is given to efficiency and other factors," the source stated. Reportedly, most of these stores slated for closure were opened during Li Auto's expansion phase.
In terms of channels, Li Auto adopts a direct-sales model. After reviewing Li Auto’s past financial reports, the reporter found that over the past five years, Li Auto experienced its most aggressive channel expansion in 2023, adding 179 retail centers within a single year.
According to financial reports, as of December 31, 2021, Li Auto operated 206 retail centers, covering 102 cities; as of December 31, 2022, it had 288 retail centers, covering 121 cities; as of December 31, 2023, the company operated 467 retail centers, covering 140 cities; as of December 31, 2024, Li Auto had 502 retail centers across 150 cities nationwide; as of December 31, 2025, Li Auto had 548 retail centers nationwide, covering 159 cities.
In terms of market performance, Li Auto's total deliveries for the full year of 2023 reached 376,030 units, marking a year-on-year increase of 182.2%, reflecting exponential growth. However, last year’s cumulative annual deliveries amounted to approximately 410,000 units, showing a decline compared to over 500,000 units sold in 2024.
In terms of financial performance, in the third quarter of last year, Li Auto recorded its first loss after 11 consecutive profitable quarters. Affected by events such as the MEGA recall, the company posted a net loss of approximately RMB 600 million in the quarter. Excluding the impact of the MEGA recall costs, its gross margin for the quarter was 20.4%.
During the subsequent earnings call, Li Xiang, Chairman and CEO of Li Auto, admitted that the quarter marked the first quarter of the company’s second decade, yet it faced various challenges brought about by product cycles, public relations issues, supply chain ramp-ups, and policy changes. These factors impacted Li Auto’s deliveries and operations. In response, he announced that Li Auto would transition from a professional manager-led model back to a venture management model to address the challenges posed by new eras and technologies.
In Li Xiang’s view, the core of venture management lies in four key aspects, including continuously improving efficiency rather than occupying more resources. "Something that cost 10 yuan to accomplish last year should now be done with 8 yuan, thereby freeing up more resources for long-term investments and capability building that do not generate short-term revenue."
Notably, behind the plans to close low-efficiency stores, Li Auto has also been accelerating its expansion into lower-tier markets. In mid-last year, the company launched the 'Hundred Cities Starlight Plan,' initiating partner recruitment in multiple regions to expand its reach through a lightweight asset model. Under this model, sales remain under Li Auto’s direct operation, while partners bear the costs of decoration and equipment.
According to Li Auto’s official website, its total number of retail centers nationwide has reached 904. The aforementioned insider revealed that the data on the official website differs from the statistical scope of the financial reports, likely including stores from the 'Starlight Plan.'
Amid intensifying industry competition, several automakers have recently announced channel reforms. Nio has also declared its plan to launch a tri-brand integrated store named 'NioSky' in lower-tier markets with sales potential. Nio's founder, Li Bin, stated outright that Nio remains firmly committed to expanding its presence in these下沉 markets this year. "By establishing more stores like the NioSky outlets, it is not cost-effective to enter with just one brand, but having three brands together makes it viable."
Editor/Liam
