Azernews.Az

by Alimat Aliyeva

Chinese hybrid and electric vehicle manufacturer Li Auto (also known as Lixiang) plans to close around a hundred showrooms and sales points as part of an optimization of its dealer network in China. The move aims to reduce current costs amid challenges in meeting the 2025 sales targets, Azernews reports.

Currently, Lixiang vehicles are sold through approximately 900 sales points in China, of which the company directly operates 548 centers in some form. Earlier, information about a mass closure of Li Auto dealerships and staff layoffs circulated on local social media, but the company officially denied these rumors.

According to reports, only about a hundred showrooms will be closed, mainly those located in areas with low sales activity. These are typically large shopping malls with high rental costs in Chinese megacities. The restructuring is intended to increase the efficiency of each dealership while simultaneously reducing operating expenses.

Last year, Li Auto sold around 406,000 vehicles, falling short of its planned volumes and showing weaker performance compared to 2024. Previously, it was reported that the company managed to achieve only 63% of its sales target.

Other premium brands are taking similar steps. For example, Porsche is also reducing its dealer network in China. If the company had 150 dealers in 2024, this number is expected to drop to around 80 by the end of 2026. Porsche’s sales in the local market have declined for the fourth consecutive year, dropping by more than a quarter in 2025.

Li Auto is simultaneously investing in new technologies: the company is expanding production of electric SUVs and testing autonomous driving systems, aiming to offset declining sales with innovative products. Analysts note that these measures could strengthen the company’s position in a highly competitive EV market.