0704 GMT - Li Auto's sales volume weakness in late 2Q 2025 was likely due to the central government's crackdown on the auto industry, Daiwa analysts write in a note. The suspension of trade-ins due to a shortfall in subsidies and the huge interest in Xiaomi's new Yu7 model have also pressured sales, they say. Although Li Auto and Xiaomi shouldn't be viewed as direct competitors as their targeted customer groups were quite different, the recent blockbuster release of the Yu7 model may hurt Li Auto's near-term demand. Li Auto's success still lies in its competitive pricing and the availability of its supercharging facilities, they say. The company may face some short-term price pressure given Yu7's popularity and suspension of trade-in subsidies in some regions, Daiwa adds.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
June 30, 2025 03:04 ET (07:04 GMT)
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