A Li i6 on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- Li Auto is attempting to counter fierce domestic competition by expanding its overseas footprint.
- A right-hand drive version of the Li Mega will be launched in Hong Kong and Singapore by year-end to boost global sales.
Li Auto (NASDAQ: LI) is accelerating its globalization pace, just as its domestic peer Nio Inc (NYSE: NIO) slows down its overseas expansion.
The company plans to introduce its pure electric Li i6 SUV (sport utility vehicle) to the European market in the second half of this year, while a right-hand drive version of the Li Mega MPV (multi-purpose vehicle) will land in core Asia-Pacific markets by the end of the year.
Li Auto president Ma Donghui announced the strategy during the company’s first-quarter earnings call on Thursday. The company is seeking to cope with fierce competition in the domestic market by expanding its overseas footprint.
The expansion plan comes as Li Auto reported disappointing first-quarter financial results. The company unexpectedly recorded a net loss of 2.3 billion yuan ($330 million) in the first quarter.
By comparison, it achieved a net profit of 647 million yuan in the same period of 2025. The company’s first-quarter revenue also fell 11.4% year-on-year to 23.0 billion yuan.
Overseas market expansion will adopt a flexible, phased strategy, Ma said. Li Auto will choose from various models, such as establishing subsidiaries or signing exclusive distributors, based on local market size and the competitive landscape.
The company hopes to rely on top local partners to quickly build a complete service system covering sales, delivery, and after-sales.
To support this ambitious internationalization strategy, regional adaptation will be done on the product side. All subsequent new models will simultaneously complete the adaptation of overseas regulations during the research and development phase.
Europe has been identified as the core target market for Li Auto’s next stage of growth. The Li i6 will be the company’s main product for its foray into the European continent in the second half of the year.
The company’s research and development center in Munich, Germany, is working to gain a deep understanding of Europe’s stringent regulations and user needs. In February, Li Auto officially joined the China Chamber of Commerce to the EU (CCCEU).
To further enhance its brand awareness in the European market, Li Auto has confirmed its participation in the 2026 Paris Motor Show. This will mark the company’s first official appearance at a top-tier international auto show in Europe.
For the right-hand drive vehicle markets, Li Auto has also set a clear launch schedule. The company plans to introduce a right-hand drive version of the Li Mega in key Asia-Pacific regions such as Hong Kong and Singapore by the end of this year.
In the Middle East and Central Asia markets, Li Auto will use its L-series extended-range models as its main sales drivers. The newly optimized Li L9 extended-range SUV model will officially land in these regions in the third quarter of this year.
Tailored for the local high-temperature environment, the model has undergone specific hardware and software upgrades in areas such as charging performance and cabin air conditioning thermal management.
Li Auto’s overseas expansion began to bear fruit in the first half of this year. In April, the company signed dealership agreements in the United Arab Emirates and Saudi Arabia and announced expansion plans for Cambodia, Laos, Macau, and Myanmar.
Despite the accelerated pace of overseas expansion, Li Auto still faces short-term domestic financial pressure. The company’s gross margin in the first quarter plummeted to 7.9% from 20.5% in the same period last year.
This reflects a decline in average selling prices caused by a different product mix, as well as the fierce domestic market price war.
Li Auto’s outlook for the second quarter also appears relatively conservative. The company expects second-quarter deliveries to be between 95,000 and 100,000 vehicles.
William Li said Nio will not exit overseas markets but will slow its pace and evaluate return on investment more cautiously.
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