Li Auto announced the closure of about 100 underperforming dealerships in China as sales dip, shifting focus to cost‑effective AutoPark hubs. Learn more now.
Chinese electric‑vehicle maker Li Auto disclosed plans to shutter roughly 100 under‑performing dealerships across the country. The move is part of a broader effort to trim costs and re‑engineer its sales network amid a pronounced slowdown in EV demand.
Why the closures?
Industry reports indicate that many of the targeted outlets operate in high‑cost retail spaces—typically premium shopping malls in Tier‑1 and Tier‑2 cities—where rent and customer‑acquisition expenses have surged. By pulling the plug on these low‑margin sites, Li Auto aims to relieve financial pressure without sacrificing its overall market presence.
Current retail footprint
At the end of 2025, the automaker ran 548 company‑owned retail centers and a total of 904 sales points, including partner‑run “light‑asset” stores. The new strategy will consolidate many of these locations into larger, more flexible AutoPark complexes.
What is AutoPark?
AutoPark locations combine spacious showrooms, vehicle hand‑over areas, and service bays under one roof. Because they are typically situated in dedicated auto‑complexes rather than high‑traffic malls, the rent is considerably lower. Li Auto will partner with local operators to share renovation costs and equipment, reducing upfront capital risks.
Addressing rumors of mass layoffs
While speculation about widespread job cuts has circulated online, company spokespeople clarified that the restructuring targets only the least productive sales points. No large‑scale layoffs have been announced, and the workforce will largely remain intact.
Impact on sales performance
Li Auto delivered about 406,000 vehicles in 2025, pushing cumulative deliveries past the 1.5‑million mark. However, year‑over‑year growth slowed sharply, and the firm fell short of its original revenue targets. The dealership cull is intended to improve profitability as competition intensifies among Chinese EV manufacturers.
Looking ahead to 2026
Early 2026 will see the rollout of the refined retail network, with a focus on efficiency and cost control. Analysts expect the AutoPark model to better align with Chinese consumers’ growing preference for convenient, one‑stop automotive experiences while helping Li Auto stay competitive in the rapidly evolving EV landscape.