A Li L6 on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- Rising prices for memory chips and lithium carbonate are putting unprecedented cost pressure on nearly all new vehicles.
- The per-vehicle cost of the new-generation Li L6 is facing an increase of more than 14,000 yuan ($2,060).
Li Auto’s (NASDAQ: LI) upcoming new-generation Li L6 extended-range SUV (sport utility vehicle) could see a price increase as costs surge.
With the per-vehicle cost of the new-generation Li L6 rising by more than 14,000 yuan ($2,060), the model may see a price hike when it launches later this month, according to a Monday report by local media outlet Leiphone that cited people familiar with the matter.
As one of Li Auto’s entry-level and best-selling extended-range SUVs, the Li L6’s facelift coincides with an industry-wide cost shock.
Prices for both memory chips and lithium carbonate have risen this year. This is putting unprecedented cost pressure on nearly all new vehicles, and the new-generation Li L6 is no exception.
The new Li L6’s battery capacity has been raised from 36.8 kWh to 51 kWh, which brought a cost increase of more than 8,000 yuan due to higher lithium carbonate prices, according to Leiphone.
In addition, the new vehicle’s memory cost has risen by nearly 4,000 yuan, while the cost of the Qualcomm 8797 chip is expected to rise by more than 2,000 yuan.
Combined, these three items push the per-vehicle cost up by more than 14,000 yuan. This does not include the additional costs from configuration upgrades such as Li Auto’s in-house developed Mach M100 chip, the report said.
“This price pressure is much greater than the outside world imagines,” the person familiar with the matter said.
Li Auto president Ma Donghui said in March that the company would try its best to absorb the cost-increase pressure, while acknowledging that it would set new model prices by taking into account factors such as component costs and user value.
This has been interpreted by the market as a sign that a price hike is no longer a question of whether, but of how much, Leiphone’s report said.
Li Auto is updating its L-series extended-range electric vehicle (EREV) models. It launched the revamped Li L9 on May 15 and rolled out the all-new Li L8, which switched from a six-seat to a five-seat layout, on June 23.
On June 16, an executive at the company said the new-generation Li L6 would launch in July. A specific date has yet to be announced.
Li Auto has one more EREV model — the Li L7. There is currently no information on an updated version of the Li L7.
Li Auto has been under dual pressure on sales and profitability in recent months. The company unexpectedly posted a net loss of 2.3 billion yuan in the first quarter, with its gross margin plunging to 7.9% from 20.5% a year earlier.
In addition, the Li L6 delivered just 4,983 units in May, down 73.47% year-on-year. This was partly due to consumers holding off on purchases while waiting for the new vehicle to launch.
Li Auto delivered 30,895 vehicles in June, down 14.84% year-on-year, marking the second consecutive month of year-on-year declines, according to data it released earlier this month.
In the first half of this year, Li Auto delivered 193,472 vehicles, down 5.13% from 203,938 in the same period last year.
Analysts say the new-generation Li L8 has an aggressive pricing strategy, which is linked to weaker orders for the Li L9 in June.
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