Li Auto‘s upcoming new-generation Li L6 extended-range SUV is under significant cost pressure due to surging prices for key components. The per-vehicle cost has risen by more than $2,060 (~AUD 2,972), raising the possibility of a price hike when the model launches later this month.
Component Costs Drive Up Li L6 Pricing
The new-generation Li L6 is experiencing a notable increase in production costs, with the per-vehicle expense rising by over $2,060 (~AUD 2,972). This increase is attributed to higher prices for memory chips and lithium carbonate, both of which have seen significant price hikes this year.
The battery capacity of the new Li L6 has been upgraded from 36.8 kWh to 51 kWh, resulting in a cost increase of more than $1,177 (~AUD 1,698) due to the elevated price of lithium carbonate. Additionally, memory costs have risen by nearly $589 (~AUD 849), and the Qualcomm 8797 chip is expected to add more than $294 (~AUD 425) to each vehicle.
Additional Upgrades and Market Impact
Beyond these core components, further configuration upgrades—such as Li Auto‘s in-house developed Mach M100 chip—are expected to add to the overall cost, though these amounts are not included in the current per-vehicle estimate.
Li Auto president Ma Donghui stated in March that the company would strive to absorb some of the cost increases, but also acknowledged that new model prices would reflect component costs and user value.
Li Auto’s Recent Model Updates and Sales Performance
The Li L6 is one of Li Auto’s entry-level and best-selling extended-range SUVs. The new-generation model is expected to launch in July, though a specific date has not been announced. Recent updates to the L-series include the revamped Li L9, launched on May 15, and the all-new Li L8, which switched from a six-seat to a five-seat layout, rolled out on June 23.
Li Auto has also faced challenges in sales and profitability. The company delivered 30,895 vehicles in June, a 14.84% decrease year-on-year, and 193,472 vehicles in the first half of this year, down 5.13% from the same period last year. The Li L6 delivered 4,983 units in May, marking a 73.47% year-on-year decline. In the first quarter, Li Auto posted a net loss of $338.5M (~AUD 488.3M), with its gross margin dropping to 7.9% from 20.5% a year earlier.
Why this matters
The rising costs for key components like batteries and chips are affecting not only Li Auto but nearly all automakers, highlighting broader industry challenges. For consumers, this could mean higher prices for new models, especially as manufacturers struggle to balance profitability with competitive pricing.
Li Auto’s situation underscores the impact of global supply chain pressures on electric vehicle affordability and availability, particularly for entry-level and popular models.
What this means for buyers
Buyers considering the new-generation Li L6 should be aware that a price increase is likely when the model launches. Those interested in Li Auto’s extended-range SUVs may want to monitor official announcements for final pricing and consider acting quickly if current inventory remains at lower prices.
With ongoing cost pressures, potential buyers should also compare the Li L6 with other models in the segment to ensure the best value for their needs.
Key Specs
- Battery Capacity (previous): 36.8 kWh
- Battery Capacity (new): 51 kWh
- Battery Cost Increase: $1,177 (~AUD 1,698)
- Memory Cost Increase: $589 (~AUD 849)
- Qualcomm 8797 Chip Cost Increase: $294 (~AUD 425)
- Total Per-Vehicle Cost Increase: $2,060 (~AUD 2,972)
- Li L6 May Deliveries: 4,983 units
- Li Auto Q1 Net Loss: $338.5M (~AUD 488.3M)
Source
Images sourced from: cnevpost.com, electrek.co, carnewschina.com, scmp.com
