Li Auto accelerates global expansion with entry into Egypt, Kazakhstan, and Azerbaijan
Chinese new energy vehicle (NEV) manufacturer Li Auto announced today its official entry into the markets of Egypt, Kazakhstan, and Azerbaijan, marking an acceleration in its global expansion strategy. This move follows the establishment of its first overseas authorised retail centre in Uzbekistan in October, where it began selling its L9, L7, and L6 extended-range electric vehicles.
The rapid establishment of sales channels and product launches in four international markets within a short timeframe underscores Li Auto’s intensified pace of overseas development.
In these newly entered markets, Li Auto will simultaneously introduce its three flagship models: the Li L9, Li L7, and Li L6.
Beyond market entry, Li Auto is also bolstering its global technical adaptability through the establishment of R&D centres in Germany and the United States. Looking ahead, Li Auto has proactively planned for future product development, with new models slated for launch in 2026 being designed with overseas market regulations in mind from their initial R&D stages.
In recent months, Li Auto has been grappling with declining sales. According to Chinese media outlet 36kr, in mid-October this year, Li Auto held a three-day closed-door autumn strategy meeting in Beijing. During this meeting, the company reflected on various issues, including sales decline, R&D, and product strategy. Consequently, they decided to adjust their vehicle models, product offerings, and R&D approach, while also accelerating their international expansion and increasing investment in AI.
At this year’s strategy meeting, Li Auto acknowledged that its “biggest mistake was delaying full-scale international expansion.” Moving forward, the company plans to significantly expedite its official global market entry.
Historically, Li Auto’s international sales relied on parallel exports to markets such as Russia, the Middle East, and Central Asia, with peak monthly export volumes reaching 4,000 units. 36kr reported that a Li Auto L9, priced at 450,000 yuan (63,000 USD), could sell for 900,000 yuan (126,000 USD) in Russia via parallel export, effectively doubling its price.
However, since the beginning of this year, Russia and various Central Asian countries have introduced numerous restrictive policies. In April, Russia enacted a policy requiring parallel export vehicles transiting through Central Asian countries from China to Russia to pay all outstanding taxes and fees. This move eliminates the low customs clearance cost advantage previously enjoyed by Chinese parallel export vehicles. Consequently, Li Auto’s parallel export volume has reportedly dropped to just a few hundred units per month.
