Li Auto plans to shut down about 100 low‑performing retail outlets in 2026 to cut costs and boost efficiency. Discover the EV maker’s retail overhaul now.
Chinese electric‑vehicle startup Li Auto announced a sweeping retail‑network overhaul that will see roughly 100 underperforming stores closed by mid‑2026. The move is part of a broader strategy to realign the company’s distribution channels amid a noticeable dip in vehicle deliveries.
Why the Closures?
The targeted outlets are primarily located in prime‑city centre malls of first‑ and second‑tier Chinese cities, where rental costs have surged and foot traffic has softened. By trimming these high‑expense sites, Li Auto aims to improve overall profitability and allocate resources to more cost‑effective locations.
Current Store Footprint
As of 31 December 2025, Li Auto operated 548 directly‑managed retail centres across 159 cities, according to its financial statements. The company’s own website lists a total of 904 retail points nationwide when partner‑owned, low‑investment stores are included.
Shift Toward AutoPark Hubs
Instead of high‑rent mall spaces, Li Auto is expanding into AutoPark facilities—large‑scale automotive parks that combine sales, delivery and after‑sales services under one roof. These hubs offer lower lease rates, larger footprints and the flexibility to integrate multiple functions, making them a more sustainable model for the brand’s growth.
‘Star Hundred‑City’ Expansion Plan
Parallel to the store closures, Li Auto is pushing its “Star Hundred‑City” initiative. This plan focuses on third‑ and fourth‑tier cities, partnering with local investors who share renovation and equipment costs. The approach reduces capital risk for Li Auto while extending its reach into emerging markets across China.
Company’s Official Response
Li Auto has publicly clarified that media reports of a massive, company‑wide shutdown are inaccurate. The official statement emphasizes that only a limited number of poorly performing mall stores will be closed this year, not a sweeping network purge.
Delivery Numbers Reveal Market Pressure
Delivery data for 2025 underscores the challenges: 44,246 vehicles were delivered in December, contributing to a Q4 total of 109,194 and a year‑end cumulative of 1,540,215. Annual deliveries hovered around 406,000 units, down from over 500,000 in 2024 and well short of the original 700,000‑unit target.
In May 2025, Li Auto lowered its 2025 delivery goal to 640,000 units as orders for key models—most notably the upgraded Li L6—slowed more than anticipated.
Looking Ahead to 2026
The retail‑network restructuring slated for early 2026 will prioritize operational efficiency and cost reduction. The company now projects deliveries of roughly 550,000 vehicles for 2026, reflecting a more conservative outlook amid fluctuating delivery performance and intensified competition in China’s new‑energy vehicle (NEV) market.
About Li Auto
Founded in 2015, Li Auto is headquartered in Beijing with its primary manufacturing plant in Changzhou, Jiangsu Province. The firm was co‑founded by entrepreneur Li Xiang, who also established the popular Chinese automotive portals PCPop and Autohome.
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