Chinese automaker Li Auto, known under the brand Lixiang, plans to close about 100 showrooms and sales points in China. The optimization of the dealer network is associated with the need to reduce costs amid underperforming sales targets, reports CarNewsChina.
Currently, Li Auto's network in China has almost 900 outlets, of which 548 are directly managed by the company. The closures will primarily affect showrooms located in large shopping centers with high rental rates. According to the publication, these locations have shown the least efficiency in terms of sales.
Previously, Li Auto denied reports of a mass departure from the market, emphasizing that it is not about curtailing business, but about restructuring the dealer network. The company clarified that the changes are aimed at improving operational efficiency and optimizing costs.
The need to revise the strategy is related to the sales results in 2025. At the end of the year, Li Auto sold about 406,000 cars, which was only 63% of the planned volume. Failure to achieve the targets was one of the key factors that influenced the decision to reduce the number of sales points.