Li Car to construct BEVs in Beijing plant

Beijing (Gasgoo)- Li Auto’s shares begun trading on Hong Kong Inventory Exchange on Thursday with an IPO value of HK$118 per share. The share finished the working day with a closing value of HK$117, down .85% from the IPO rate.

Photo credit rating: Li Car

The automaker commenced the program to list in Hong Kong correct right after its IPO in New York in July, 2020. Hong Kong is an global capital market place with diversified buyers, and there Li Automobile can attract much more traders from the Asia-pacific area, Shen Yanan, the company’s co-founder and president mentioned in an job interview. Aside from, listing in Hong Kong and New York can support to get over some uncertainties.

Since Li Auto has been a shown corporation in the U.S. for only 1 calendar year, it adopts twin principal listing system in Hong Kong, instead than secondary listing. Even however twin listing appears harder for businesses require to fulfill distinctive specifications of two exchanges, it is simpler for organizations to comply with rules for mainland listing. Li Vehicle does not rule out the chance to trade shares in China’s mainland, Shen extra.

The proceeds Li Auto obtained from the Hong Kong listing will be used to fund its upcoming products progress. In accordance to the executive, the firm will commit about RMB2.5 billion for each and every design in the foreseeable future.

Li Autoli auto HK listing, Li auto Hyundai factory, China automotive news

Shen Yanan, co-founder and president of Li Auto

Li Auto will concentrate on three segments. The very first is e-powertrain technologies, which include the upcoming-generation range prolonged auto technologies which are beneath growth, and 400kW superior speed charging systems. The 2nd segment is autonomous driving systems, which are its very long-time period aim. For instance, its 2021 Li 1 features whole-stack self-made highly developed driving help process. The last a single is clever cockpit advancement to bring far better consumer encounter.

Exclusively, 45% of the full HK$ 1.15 billion it obtained will be utilised for R&D, 45% for increasing infrastructure network and marketing, the rest 10% for operations. To break down the financial investment for R&D, 20% will be for creating higher-voltage battery electric powered technologies, platforms and long run models, 15% for creating autonomous driving technologies and 10% for establishing variety extended platforms.

According to Li Auto’s program, it will launch the to start with model, a complete-dimensions premium selection-extended electric powered SUV, on its X platform in 2022, and two selection-extended SUVs in 2023. From 2023 on, the organization also aims to launch at the very least two higher voltage battery electric powered motor vehicle types for every 12 months dependent on its Whale and Shark platforms.

Aside from SUV styles, it is also feasible for Li Vehicle to make other kinds of autos, together with sedans. “We deliver vehicles for households, so products and solutions will not be restricted to only 1 style and we will continue to keep modern with merchandise improvement.”

Before the deliveries of its battery electric autos start out, Li Vehicle will deploy its individual charging infrastructure. To the automaker, energy refilling is one particular of the most critical things to influence customers’ determination to obtain an electrical vehicle. And it hopes to make charging as effortless and successful as refueling of traditional autos. With its large-electrical power charging community, charging will turn out to be more rapidly, more affordable, and extra accessible, the organization extra.

Many thanks to its accurate understanding of customers’ requires, Li Car has described finest-at any time supply results for two consecutive months. In July, the automaker’s month to month deliveries totaled 8,589, growing by 11.4% month in excess of month and 251.3% 12 months over yr and outnumbering its two major startup rivals, NIO and XPeng.

Li Autoli auto HK listing, Li auto Hyundai factory, China automotive news

2021 Li ONE Photograph credit: Li Auto

Shen stated that the new superior volume was driven by the excellent characteristics and general performance of the 2021 Li Just one, whose deliveries started from June 1. And the corporation is confident that deliveries will exceed the 10,000 milestone in September.

But the automaker was also struggling from automotive chip lack in the past numerous months. The orders for the 2021 Li A person have exceeded 10,000, but due to the shortage, the company was not able to provide so many autos, the govt disclosed. To clear up this situation, Li Car is making an attempt to come across alternate methods and striving for far more sector methods.

Li Auto will also enhance its expenditure in income channel. By August 11, it experienced 110 retail stores, which will be included to 200 suppliers by the conclude of this yr. Notably, the organization will established up more outlets in procuring malls, which have wonderful visitors.

Shen also verified that his organization will make battery electric autos in its Beijing plant, but he did not confirm Li Automobile has taken over a single of Beijing Hyundai’s vegetation. At the end of Might, a document showed that Li Auto would just take in excess of Beijing Hyundai’s 1st Plant in Beijing and invest 6 billion yuan ($930.6 million) to establish a international flagship manufacturing facility, which is established to get started creation in 2023 with an expected industrial output of 30 billion yuan ($4.653 billion) in 2024. In June, Li Vehicle started out selecting numerous positions for its manufacturing facility in Beijing.

As to the abroad marketplaces, Li Automobile has developed a team to research overseas markets and come across an proper way. “We have to make right solutions for every sector and locate out how to earn area shoppers and what are our positive aspects.”

Anette Rentie

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