Li Auto to Close Underperforming Stores and Optimize Direct Sales Network

Li Auto is planning to close a number of its less energy-efficient directly operated stores, currently in the evaluation phase, with the exact number yet to be disclosed. According to informed sources, most of these stores were established during the company’s previous rapid expansion phase. 2023 marked Li Auto’s most aggressive year for channel expansion, with 179 new retail centers added throughout the year. By the end of 2025, the company operated 548 retail centers nationwide, covering 159 cities; however, its official website lists a total of 904 locations, with the discrepancy likely due to the inclusion of stores under the “Stellar Plan”—a partnership model where partners cover renovation and equipment costs while sales operations remain managed by Li Auto itself. Affected by issues such as the MEGA recall, Li Auto ended its streak of 11 consecutive profitable quarters in Q3 2024, reporting a net loss of approximately RMB 600 million. The company delivered around 410,000 vehicles in 2024, falling short of its annual target of over 500,000 units. This latest adjustment aims to enhance channel efficiency.