The planned closures, expected in the first half of 2026, will target underperforming stores, particularly those in the central areas of China's tier-one and tier-two cities. This move aims to adjust the distribution channel structure as the company faces sales pressure, a Sina report indicated.
As of 31/12/2025, Li Auto operated 548 direct retail centers across 159 cities, according to its financial reports. Its official website lists a total of 904 retail centers nationwide, including those with low-capital investment partners.
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Li Auto's One model at a store in China. Photo: Li Auto |
The planned closures are part of a broader distribution channel strategy Li Auto is implementing to boost operational efficiency. This strategy involves withdrawing from high-rent mall stores, which incur increasing acquisition costs, and prioritizing expansion into AutoPark industrial zones. AutoPark locations typically offer larger spaces and integrate sales, delivery, and maintenance functions at lower rental costs compared to traditional mall stores.
Li Auto is also advancing its "Hundred City Star Plan" to strengthen its presence in tier-three and tier-four cities through low-capital investment partnerships. This approach involves collaborating with local partners to share renovation and equipment costs, thereby reducing investment risks and allowing for broader coverage in lower-tier markets as an alternative to significant direct investment.
Li Auto publicly addressed online information, asserting that widespread reports of mass closures are inaccurate. The official announcement emphasized that only a limited number of underperforming mall stores are slated for closure this year, and this does not constitute a widespread shutdown.
Li Auto's 2025 delivery results reflect market challenges, forming the basis for its distribution channel adjustments. The brand delivered 44,246 vehicles in 12/2025, contributing to a total of 109,194 vehicles delivered in Q4. The cumulative total of vehicles delivered by year-end reached 1,540,215. For the full year 2025, total deliveries were approximately 406,000 units, a decrease from over 500,000 vehicles in 2024, and fell short of the company's initial sales targets.
Initially, Li Auto aimed to deliver 700,000 vehicles in 2025. In 5/2025, the company reduced its target to 640,000 vehicles due to weaker-than-expected order volumes for its models, particularly the updated Li L6 series.
The restructuring of Li Auto's retail network in early 2026 prioritizes efficiency and reduced operating costs. This comes as the company faces fluctuating delivery performance and competitive pressure in China's new energy vehicle market. Its 2026 target is to deliver approximately 550,000 vehicles.
Founded in 2015, Li Auto is headquartered in Beijing with a manufacturing plant in Changzhou, Jiangsu province. The company's founder, Li Xiang, also founded the Chinese website PCPop and the automotive website Autohome.
My Anh (according to CarNewsChina)
