Li Auto Shifts Gears: Li i9 and New MEGA Imminent as BEV Sales Match EREV
On September 2, the new-generation Li Auto MEGA is arriving.
In terms of styling, the vehicle hasn't changed much; it remains the familiar "high-speed train." However, in places we cannot see, its configurations have been almost entirely overhauled.
Rear-wheel steering, steer-by-wire, and active anti-roll bars will simultaneously appear on the new-generation MEGA. On the other hand, Li Auto's self-developed Mach M100 chip will also be installed, enhancing the MEGA's lateral and rear perception capabilities. A new high-performance cockpit chip will bring more possibilities to the Li classmate (AI assistant).
In terms of interior design, adjustments have been made to the second and third-row seats, as well as to the cabin ambiance and interactive details.
Undoubtedly, this is the most significant upgrade since the MEGA's launch.
The MEGA's size dictates that users must face considerable driving pressure from the very first day of taking delivery. Its 5355mm length and 3300mm wheelbase provide a massive cabin space, but also make U-turns, underground garage parking, and navigating narrow roads much more difficult.
This round of chassis enhancements should theoretically give the nearly 3-ton MEGA MPV agility closer to that of a mid-to-large SUV. Li Auto President Ma Donghui stated during the Q2 earnings call:
**The product competitiveness of the refreshed MEGA has been systematically improved. The powertrain has also seen a minor upgrade. The front motor of the new-generation MEGA remains at 155kW, while the rear motor has increased from 245kW to 258kW. The combined dual-motor power has risen from 400kW to 413kW.
As Li Auto's first pure electric product, the MEGA carries strong technological labels. 5C supercharging and ultra-low wind resistance were its most distinctive technical calling cards when entering the BEV market. With the new-generation MEGA, the scope of technological display has expanded further.
The chips, AI, perception, and steer-by-wire chassis that Li Auto has continuously invested in over the past year are now converging in this vehicle.
Consequently, the MEGA continues to play the role of Li Auto's "technology flagship."
The market capacity for pure electric MPVs in the 500,000 RMB class is limited, making it clear that the MEGA will not easily become a major sales driver. It is better suited for pushing Li Auto's most advanced technologies to the forefront before gradually diffusing them to other models.
Therefore, the new-generation MEGA is also a window into Li Auto. From this vehicle, we can clearly see what has happened to the company over the past two years.
Grasping Both EREV and BEV
During the earnings call, Li Xiang revealed a piece of data sufficient to change outside perceptions: Li Auto's current EREV and BEV orders are now approaching a 1:1 ratio**.
This is one of the most noteworthy changes in Li Auto's Q2 financial report.
Over the past few years, Li Auto has been almost exclusively tied to the term "range extension." The L6, L8, and L9 constituted the company's most important sales drivers, helping Li Auto establish a solid user perception in the family SUV market above 200,000 RMB. The underwhelming market performance of the first-generation MEGA further deepened external doubts about Li Auto's pure electric business.
By 2026, this impression can no longer keep up with Li Auto's transformation.
On the BEV side, Li Auto already has the i6, i8, and MEGA, with the six-seat flagship SUV i9 joining in mid-September. On the EREV side, the L6, L8, and L9 continue to provide support.
On one hand is the mature EREV foundation; on the other is a fully formed BEV product line. Li Auto's "Dual Power Strategy" is no longer confined to product planning; it is now directly reflected in its order structure.
Among them, the i6 represents the most crucial step.
During the earnings call, Li Auto defined the i6's market performance as "having achieved success." According to official data, the i6 has ranked in the top three for BEV sales above 200,000 RMB for six consecutive months. For Li Auto, this means its BEV business finally has a product capable of consistently contributing scale.
The i9, launching in mid-September, will continue to extend the pure electric product line upward. It enters the market Li Auto is most familiar with: high-end, six-seat, family SUVs.
Over the past few years, Li Auto has established a mature product methodology in this market. How to distribute space, how to accommodate different family members in the second and third rows, how to design the cockpit for multi-passenger use, and which configurations can genuinely create perceived value—Li Auto has repeatedly validated all of these. The i9's task is to fully migrate this capability to a pure electric platform.
From a product structure perspective, Li Auto's transformation has crossed a critical threshold; their second growth curve has formed.
In the past, if users wanted to switch from EREV to BEV, Li Auto risked losing those orders. Now, as their pure electric series takes shape, users do not have to leave Li Auto showrooms even if they switch to buying BEVs.
However, for now, this shift has not yet brought the same robust profitability as before. In the second quarter, Li Auto's overall gross margin was only 11%. A year ago, this figure was 20.1%.
The products have shifted gears, but profits are still catching up.
Making Li Auto into Apple or Huawei
Although there is still significant room for improvement in the overall gross margin, Q2 operating data shows that Li Auto has moved past its low point at the beginning of the year.
In the second quarter, Li Auto delivered a total of 98,330 new vehicles, up 3.4% quarter-on-quarter; total revenue reached 25.67 billion RMB, up 11.
7% QoQ; and vehicle sales revenue was 24.07 billion RMB, up 11.8% QoQ.
The overall gross margin also recovered from 7.9% in Q1 to 11.0%, and the vehicle gross margin recovered from 6.
1% to 9.4%.
Losses have also narrowed. In Q2, Li Auto reported a net loss of 1.71 billion RMB, a 25.1% decrease compared to the 2.28 billion RMB loss in Q1.
Looking solely at quarter-on-quarter data, Li Auto's operating conditions are improving. However, if we extend the perspective to the entire first half of the year, the company still has a considerable gap to close before returning to last year's state.
In the first six months of this year, Li Auto delivered a cumulative total of 193,500 vehicles, down 5.2% year-on-year; total revenue was 48.65 billion RMB, down year-on-year...