Li Auto Inc. (NASDAQ: LI) disclosed vehicle delivery figures for January 2026, reporting a total of 27,668 units sold during the month. This number represents a 7.55% decrease year-over-year, extending a downward trend for the automaker's deliveries to eight consecutive months. This latest tally is noted as the firm's lowest monthly delivery volume since March 2025.
The drop from the previous month was particularly steep, with January deliveries plunging 37.47% relative to December 2025. Market analysis attributes these declines primarily to elevated competitive pressures impacting Li Auto's key L-series hybrid models, along with diminished demand affecting their all-electric i-series SUVs.
Regarding its retail and service network, Li Auto maintains a robust presence within China, operating 547 retail locations spanning 159 cities. Additionally, the company supports 547 service centers and authorized shops distributed across 221 cities. To enhance user convenience, Li Auto also manages a comprehensive charging infrastructure comprising 3,966 supercharging stations equipped with a total of 21,945 charging stalls nationwide.
Performance among Li Auto's prominent rivals during January has been varied. XPeng Inc. (NYSE: XPEV) experienced a marked downturn, reporting deliveries of 20,011 vehicles, equating to a 34% reduction compared to the same period the previous year. Conversely, Nio Inc. (NYSE: NIO) posted a strong performance, delivering 27,182 vehicles and recording an impressive 96.1% year-over-year growth for January 2026. This divergence highlights an evolving competitive landscape within China's electric vehicle sector, with significant disparities emerging between major manufacturers.
Li Auto's recent fiscal results further underscore operational challenges. In its fiscal third quarter of 2025, the company reported a substantial decline in revenue from vehicle sales, amounting to $3.6 billion—a 37.4% decrease from prior levels. The quarter was also marked by compressed profit margins and increased costs related to a significant vehicle recall event. These factors collectively contributed to the overall drag on financial performance.
In stock market activity following these developments, Li Auto shares exhibited a modest decline of 0.78%, trading at $16.50 during premarket sessions. The stock price remains near its 52-week low, recorded at $15.71, reflecting ongoing investor caution.
Li Auto's current delivery trajectory illustrates ongoing market pressures that challenge its sales momentum, particularly as it confronts intensifying competition and shifting consumer preferences within the hybrid and electric vehicle segments.
The company's expansive retail and charging footprint underscores its commitment to accessibility and service support across numerous Chinese cities, a strategic element amid evolving sector dynamics.
The contrasted performances among key industry players reveal a sector in flux, with some manufacturers capturing growing market shares while others encounter headwinds that constrain growth and profitability.
Li Auto's prior quarterly financial reports, highlighting diminished sales volumes and recall-related expenses, suggest operational cost challenges which may impact near-term balance sheet resilience.
Investor response to the current market environment appears cautious, as reflected in the recent share price movements nearing historic lows, signaling a period of uncertainty and adjustment for Li Auto within the competitive electric and hybrid vehicle marketplace.