Li Auto to Absorb Component Cost Increases Internally, Strengthening Supply Chain Collaboration

During the Q4 and full-year 2025 earnings call, Li Auto President Ma Donghui stated that in response to rising component prices, the company will lock in prices or supply volumes in advance by signing long-term agreements (LTAs) with suppliers and strictly enforcing existing price-adjustment mechanisms. Where such adjustment clauses are absent, Li Auto will share the cost burden with its suppliers. Additionally, the company is advancing in-house development of core components such as range extenders and chips to enhance its cost-control capabilities. Ma emphasized that pricing for new models will take into account both component costs and user value, expressing confidence that the impact of raw material price increases can be kept within a reasonable range and that external cost pressures will be largely absorbed internally.