Li Auto Launches New L6 to Revive Range-Extended EV Core and Reduce Reliance on i6

In the first half of 2024, Li Auto’s sales were heavily concentrated on its all-electric model, the i6, which accounted for over 62% of the company’s total retail sales. This phenomenon was partly due to the discontinuation of older models like the L7 and L8, while newer models were still in their ramp-up phase—temporarily shifting the bulk of sales volume to the i6. However, such a high reliance on a single model highlights the company’s lack of stable multi-model support. During the same period, Li Auto delivered approximately 193,500 vehicles, a year-over-year decline of about 5%, with monthly sales hovering around 30,000 units. The rising proportion of lower-priced models also pressured margins, causing the company’s gross margin to drop to 6.1% in Q1, turning it from profit to loss. To reduce dependence on the i6 and reignite overall sales growth, Li Auto has launched the new-generation L6. The previous L6 had accumulated nearly 400,000 deliveries and was once the company’s flagship product. The new L6 specifically addresses shortcomings of its predecessor in range, charging speed, and driver-assistance capabilities: battery capacity has been increased to 51 kWh, delivering a CLTC all-electric range of 300 km, and DC fast-charging time from 20% to 80% has been reduced to just 12 minutes. It also comes standard with Li Auto’s self-developed Maha M100 chip, Qualcomm’s SA8797 cockpit chip, and a 29-inch 6K display. Priced uniformly at RMB 249,800, the new L6 matches the starting price of both the entry-level version of the previous L6 and the i6. Despite cost pressures from hardware upgrades, Li Auto opted to enhance specifications without raising prices—a clear signal that it prioritizes sales scale over short-term profitability. Notably, the new L6 does not offer a “Livis” variant. High-cost features such as an 800V full active suspension and a complete steer-by-wire chassis are reserved for higher-end models like the L8 Livis, priced at RMB 429,800. Industry analysts note that a full active suspension system adds roughly RMB 50,000 in costs—posing significant pressure for a vehicle in the RMB 250,000 segment. Even top-trim competitors in the same price range, such as the XPeng G6, do not include this feature. Consequently, while the L6’s tech specs align with its entry-level positioning, it ends up equipped with an advanced “brain” (smart chips and algorithms) but lacks a fully capable “body” (high-end actuation hardware), making it difficult to establish a distinct technological identity. The current market environment is increasingly unfavorable for extended-range electric vehicles (EREVs). In H1 2024, China’s passenger vehicle retail sales declined by 20.2% year-over-year. Within the NEV segment, BEV wholesale deliveries grew by 26.9% in June, while EREV sales dropped by 25.2%. As large-capacity batteries and high-voltage ultra-fast charging platforms become widespread, BEVs are accelerating their replacement of EREVs—a trend exemplified by the success of the i6. The new L6 must now prove that, even amid rapid BEV expansion, an EREV SUV offering longer pure-electric range and faster refueling can still attract incremental customers. External competition is also intensifying. The RMB 250,000 price bracket now includes multiple strong contenders such as the Aito M6, Xiaomi YU7, Tesla Model Y, IM LS6, Zeekr 7X, and LeDao L60. Xiaomi’s newly launched EREV series similarly targets the “smart, flexible large-space SUV” segment, further squeezing market space. Moreover, the new L6 shares the same starting price as the i6, resulting in significant overlap in target users and usage scenarios: the L6 emphasizes extended range, all-wheel drive, and a mature family SUV experience, while the i6 leverages its native BEV platform, long range, and 5C ultra-fast charging to appeal to buyers. This creates potential for both demand cannibalization and direct competition between the two models. According to public reports, Li Auto CEO Li Xiang stated that the company’s two core goals for 2024 are: completing a full generational upgrade of the L-series (L9, L8, L6), and maintaining a monthly sales volume of 30,000 units for the i-series following the launch of the i9. He emphasized that healthy sales scale and gross margin form the foundation for competitive resilience, noting, “Gross margin is all the money and ammunition we have.” The new L6 carries the critical mission of defending Li Auto’s EREV stronghold and repairing its business model—it is widely seen as a battle the company “cannot afford to lose.”