Li Auto Vice President of Supply Chain, Meng Qingpeng, warns of a potential chip supply crisis in 2026. He projects a possible shortfall that could reach nearly 50%.
The broader Chinese auto industry faces a significant cost squeeze next year. This pressure stems from soaring prices for key components, including memory chips and battery materials. These increased input costs could inflate production expenses by thousands of yuan per vehicle.
Intense market competition is expected to prevent manufacturers, including Li Auto, from passing these higher costs to consumers. This inability to adjust pricing will potentially impact profit margins across the industry.