Li Auto Reports Q2 2025 Earnings: Revenue Down 4.5% YoY, Vehicle Deliveries Exceed 110,000

Li Auto Inc reported Q2 2025 total revenue of RMB30.2 billion, down 4.5% YoY, but up 16.7% QoQ. Vehicle sales revenue was RMB28.9 billion, down 4.7% YoY, but up 17% QoQ. Gross profit was RMB6.1 billion, down 1.8% YoY, but up 14.1% QoQ. Net income was RMB1.1 billion, down 0.4% YoY, but up 69.6% QoQ. Vehicle deliveries exceeded 110,000 in Q2 2025, with a 13.4% market share in the RMB200,000 and above NEV market in China.

Li Auto Inc (NASDAQ:LI) reported its Q2 2025 financial results, showcasing a mixed performance with notable achievements and strategic shifts. The company reported total revenue of RMB30.2 billion, down 4.5% year-over-year (YoY) but up 16.7% quarter-over-quarter (QoQ). Vehicle sales revenue reached RMB28.9 billion, down 4.7% YoY but up 17% QoQ. Gross profit stood at RMB6.1 billion, down 1.8% YoY but up 14.1% QoQ. Net income was RMB1.1 billion, down 0.4% YoY but up 69.6% QoQ. Vehicle deliveries exceeded 110,000, capturing a 13.4% market share in the RMB200,000 and above NEV market in China [1].

Key highlights of the quarter include:

1. Vehicle Sales and Market Share: Li Auto delivered over 110,000 vehicles in Q2 2025, achieving a 13.4% market share in the premium NEV segment in China. The strong sales of Li Mega Home and Li i8 models contributed significantly to this performance [1].

2. Gross Profit and Margin: Gross profit increased by 14.1% QoQ, reaching RMB6.1 billion. The gross margin stood at 20.1%, up from 19.5% YoY and 20.5% in the prior quarter [1].

3. Operating Expenses: Operating expenses increased by 8.2% YoY and 3.8% QoQ, reaching RMB5.2 billion. Research and development (R&D) expenses decreased by 7.2% YoY and quarter-over-quarter, totaling RMB2.8 billion [1].

4. Net Income and Cash Position: Net income was RMB1.1 billion, down 0.4% YoY but up 69.6% QoQ. The company maintained a strong cash position of RMB106.9 billion as of June 30, 2025 [1].

5. Charging Network and AI Investments: Li Auto expanded its charging network to over 3,100 stations, with plans to reach 4,000 by the end of 2025. The company invested over RMB6 billion in AI infrastructure and product development, enhancing its VLA driver large model [1].

Li Auto's strategic shifts include:

- Product Marketing and Channel Strategies: The company is enhancing product competitiveness through major upgrades in assisted driving for electric range extended vehicles (eREVs) and expanding its product lineup with battery electric vehicles (BEVs) [2].
- AI Strategy and Focus: Li Auto aims to become a hardware manufacturing company in the AGI world, focusing on three types of robots: space robots, human capability enhancers, and indoor robots [2].
- Overseas Market Strategy: The company plans to expand globally, with R&D centers in Germany and the U.S., and a focus on the Middle East, Central Asia, and Europe [2].
- In-House Chip Development: Li Auto's in-house designed chips are currently in vehicle testing and expected to be deployed on flagship models next year [2].

Li Auto faces challenges, including lower average selling prices, higher sales incentives, and talent movement within its autonomous driving team. However, the company maintains a strong cash position and a robust charging network, providing financial stability for future growth.

References:
[1] https://ca.finance.yahoo.com/news/li-auto-inc-li-q2-070513721.html
[2] https://www.ainvest.com/news/li-auto-q2-2025-contradictions-emerge-product-marketing-ai-strategy-assisted-driving-overseas-expansion-house-chip-development-2508/