Market Insight | Li Auto-W drops more than 7%, L6 sinks to the price range of 200,000-300,000 yuan, institutions expect the market competition to remain intense

Li Auto-W fell more than 7%, as of the deadline, it dropped by 7.06% to HKD 106.7, with a turnover of HKD 682 million. On the news front, on April 18th, Li Auto's fourth mid-size extended-range SUV, Li ONE, was officially launched, offering two configurations: max/pro, with a new car price of RMB 249,800/279,800. Cui Dongshu, Secretary-General of the China Passenger Car Association, previously announced data showing that the retail sales of passenger cars in the price range of RMB 200,000 to 300,000 accounted for 15.9% of the Chinese market in 2023, while the retail sales of passenger cars in the price range of RMB 300,000 to 400,000 accounted for 11%, and the retail sales of passenger cars priced above RMB 400,000 accounted for 3.2%. Orient Securities previously pointed out that in 2024, Li Auto and others successively launched entry-level models, coupled with new models from Huawei, Xiaomi, and others entering the market, it is expected that the competition in the RMB 200,000 to 300,000 new energy vehicle sub-market will continue to intensify. Ping An Securities stated that Li Auto's series of adjustment measures highlight its agile error correction ability, with sufficient preparation in hand, and the monthly sales volume of Li ONE positioned in the price range of RMB 200,000 to 300,000 is expected to reach 20,000 units. The four L-series models have strong profitability, remaining the sales base for the company in 2024