Li Auto plans to close underperforming retail stores to improve efficiency. This move responds to persistent sales declines in a competitive market. The targeted outlets opened during a period of aggressive expansion. As of December 31, Li Auto operated 548 retail stores across 159 cities.
The decision follows a decline in company deliveries during 2025. Li Auto set a tentative 2026 sales target of 550,000 vehicles. This target represents a 40% increase.
To achieve this goal, the company refocuses its strategy on regaining a leading position in the extended-range electric vehicle (EREV) market. The store closures streamline operations to support this effort.