Li Auto Q4 2024 Earnings Call Transcript

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Provided by Quartr
March 14, 2025

Key Takeaways

  • Record deliveries: In Q4 2024 Li Auto delivered over 158,000 vehicles and surpassed 500,000 full-year deliveries, becoming the first emerging NEV and Chinese premium auto brand to hit this milestone.
  • Margin pressure: Q4 vehicle margin fell to 19.7% (from 22.7% YoY) and net income declined 38.6% year over year to RMB 3.5 billion, reflecting lower ASPs and higher costs.
  • Autonomous driving leadership: Li Auto rolled out its industry-first ADMAX V13 solution trained on 10 million video clips, earning top rankings in head-to-head reviews and paving the way for next-gen Vision Language Action models.
  • Supercharging network expansion: The company now operates over 1,900 supercharging stations with 10,000+ stalls and plans to reach 2,500 stations by its BEV SUV launch and 4,000 stations by end-2025.
  • Q1 2025 outlook: Li Auto forecasts 181,000 vehicle deliveries (up 9.5–15.7% YoY) but expects total revenue to decline 8.7–3.5% year over year.
AI Generated. May Contain Errors.
Earnings Conference Call
Li Auto Q4 2024
00:00 / 00:00

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Operator

Hello, ladies and gentlemen. Thank you for standing by for Lee Auto's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Zheng, Investor Relations Director of Li Auto. Please go ahead, Janet.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Thank you. Good evening and good morning, everyone. Welcome to Li Auto's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. The company's financial and operating results were published in our press release earlier today and are posted on the company's IR website. On today's call, we will have our Chairman and CEO, Mr. Xiang Li and our CFO, Mr. Johnny Tierli to begin with prepared remarks. Our President, Mr. Dong Hui Ma and our Senior Vice President, Mr. Jiang Zeng Zhou will join for the Q and A discussion.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Before I continue, please be reminded that today's discussion will contain forward looking statements made under the Safe Harbor provisions of The U. S. Private Securities Litigation Reform Act of 1995. Forward looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Further information regarding risks and uncertainties is included in certain company filings with the U. S. Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward looking statements except as required and applicable law. Please also note that Liautaud's earnings press release and this conference call include discussions of unaudited U.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

S. GAAP financial information as well as unaudited non GAAP financial measures. Please refer to Lioto's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non GAAP measures to comparable U. S. GAAP measures.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.

Moderator

Hi, everyone. Welcome to today's conference call. China's NEV market maintained rapid growth in 2024. According to insurance registration data from the China Automotive Technology and Research Center, China's NEV penetration rate exceeded 50% for many consecutive months in 2024, reaching 45.9% for the full year, up 12 percentage points year over year. Leveraging our outstanding product portfolio, organizational efficiency and continuous breakthroughs in artificial intelligence, we further solidified our position as the sales champion among Chinese auto brands in the RMB 200,000 and above NEV market, taking our full year market share to 15.3%.

Moderator

In the fourth quarter of twenty twenty four, we delivered over 158,000 vehicles, setting a new quarterly record. Our full year deliveries exceeded 500,000 units, making us both the first emerging NEV branding and first Chinese premium auto brand to reach this milestone. In addition, each model in our Li L series, including the L6, L7, L8 and L9 have achieved cumulative deliveries of over 200,000 units respectively, showcasing the strong user recognition of our products and our highly efficient and consistent delivery capability. These achievements will not have been possible without the effort and dedication of every team member at Li Auto, the support of our partners and the trust of our users. I would like to express my heartfelt gratitude to them and look forward to reaching new milestones in collaboration.

Moderator

As our business continues to expand, a number of our financial metrics have reached record highs for the quarter. In Q4 twenty twenty four, total revenues reached RMB44.3 billion, taking full year total revenues to RMB144.5 billion. As of the end of twenty twenty four, our cash on hand has reached RMB 112,800,000,000.0. Our robust cash generation capabilities and substantial cash reserves provide solid support to our long term investments in electrification and artificial intelligence, advancing our progress toward our long term vision. Looking forward, we expect continued growth in 2024 aiming for 88,000 to 93,000 vehicle deliveries in Q1.

Moderator

There is no doubt that intelligence is the theme of the next phase of auto industry's evolution. We continue to invest in R and D and accelerate innovation. Our R and D investments exceeded R and D $11,000,000,000 in 2024, driving further breakthroughs and growth in our autonomous driving system. In terms of autonomous driving, we solidified our position as a top tier player in the sector. Our industry pioneering dual system autonomous driving solution combining an end to end model with a vision language model sets the trend in the industry with industry leading pace of iteration and performance.

Moderator

In January, we rolled out ADMAX V13, upgrading highway NOA to an end to end architecture, providing end to end capability across both urban and highway driving scenarios. In parallel, we introduced a first of its kind AI reasoning visualization feature for autonomous driving, providing users with a better understanding of how the autonomous driving function works. In February, we rolled out our latest end to end and DLM models trained on 10,000,000 video clips for all AD Max users, making us the first automaker in China to deploy large models to train on 10,000,000 video clips. Our autonomous driving system has been evolving at an industry leading pace, taking only seven months to grow from 1,000,000 to 10,000,000 video clips. In addition, our 10,000,000 video clips AD Max V13 boasts industry leading performance, which was clearly demonstrated in our recent press reviews that evaluated top tier autonomous driving systems from global and domestic auto brands.

Moderator

AD Max V13 secured first place in a number of these head to head reviews with a significant advantage in terms of number of interventions. Additionally, we have already initiated R and D for next generation model base on the Vision Language Action or VLA architecture. We plan to launch it alongside our first battery electric SUV, Li L8, this year delivering refreshed autonomous driving experience to our users. Moving on to supercharging network. We're accelerating its deployment in preparation for the launch of BEV models in 2025.

Moderator

In 2024, we built fourteen twenty supercharging stations at an industry leading pace. We operate the largest highway supercharging network of any auto OEM in China. As of now, we have over 1,900 supercharging stations with over 10,000 charging stalls in operation. Our supercharging networks covers a wide range of regions, both in rapid charging speed and high uptime rate. And even in winter, Li Mega can charge up to 500 kilometers in twelve minutes with battery precondition.

Moderator

Even under the heavy load of spring festival holiday, our charging facilities reach an uptime rate of 99.9%. The overall charging experience and efficiency are essential to BEV users. Looking forward, we will continue to accelerate the deployment of our supercharger network aiming to have 2,500 supercharging stations by the time we launch LiI8, our first battery electric SUV. We plan to expand to 4,000 stations by the end of twenty twenty five. Moving on to our sales and servicing network.

Moderator

In 2024, the overall quality and sales efficiency of our retail stores have improved substantially. By replacing lower performing shopping mall stores with sales centers located in major auto parks, our proportion of sales centers have increased from 24% at the end of twenty twenty three to 42% at the end of twenty twenty four. Total nationwide display spots increased from over 2,600 to over 3,700. In terms of same store sales, taking the newly opened Hangzhou Hi Tech Zone Sales Center as an example, its same store sales has reached 175 units per month in just four months since August. This fully demonstrates the operating efficiency of our new sales centers.

Moderator

As of 02/28/2025, we had 500 retail stores in 150 cities nationwide. Looking ahead to 2025, while we continue to strengthen our offline presence, we will continue to pursue high quality expansion of a sales network at a reasonable pace, prioritizing operating efficiencies. We're also advancing our overseas expansion as planned. In January 2025, we opened our R and D center in Munich, Germany. This is our first overseas R and D center, marking the first step in our globalization R and D strategy.

Moderator

Additionally, we have established directly operated servicing centers in three regions: Kazakhstan, Dubai and Uzbekistan. In 2025, we plan to enhance our overseas expansion efforts with a continued focus on markets with high growth potential. We believe that in the future, we will see an increasing number of Li Auto vehicles on the road in different countries. Looking forward to 2025, we will maintain our product competitiveness with a relentless focus on creating user value. We will further upgrade our existing models and ensure the smooth launch of our new BEV model.

Moderator

In addition, we will continue to embrace intelligent transformation by strengthening our R and D, technological innovation and cash generation capabilities to ensure sustainable long term development and breakthroughs in this artificial intelligence era. I will now turn the call over to our CFO, Johnny, to walk you through our financial performance.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Thank you, Tian. Hello, everyone. I will now walk you through some of our fourth quarter twenty twenty four financials. Due to time constraints, I will address financial highlights here and encourage you to refer to our earnings press release for further details. Total revenues in the fourth quarter were RMB44.3 billion or US6.1 billion dollars up 6.1% year over year and 3.3% quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

This included RMB42.6 billion or US5.8 billion dollars from vehicle sales, up 5.6% year over year and 3.2% quarter over quarter. Both the year over year and the sequential increase were primarily attributable to the increase in vehicle deliveries, partially offset by the lower average selling price. The year over year ASP decline was mainly due to different product mix, while the sequential ASP change was mainly due to the interest subsidies provided to customers. Cost of sales in the fourth quarter was RMB35.3 billion or US4.8 billion dollars up 10.5% year over year and 4.9% quarter over quarter. Gross profit in the fourth quarter was RMB9 billion or US1.2 billion dollars down 8.3% year over year and 2.8% quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Vehicle margin in the fourth quarter was 19.7% compared with 22.7% in the same period last year and 20.9% in the prior quarter. The year over year decrease was mainly due to different product mix. The sequential decrease was mainly due to the loss on purchase commitment and lower average selling price due to interest subsidies provided to customers. Gross margin in the fourth quarter was 20.3% versus 23.5% in the same period last year and 21.5% in the prior quarter. Operating expenses in the fourth quarter were RMB5.3 billion or US721.6 million dollars down 22% year over year and 9.1% quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

R and D expenses in the fourth quarter were RMB billion or US329.9 million dollars down 31% year over year and 6.9% quarter over quarter. The year over year decrease was primarily due to the decreased expenses related to product portfolios and technologies and decreased employee compensation. The sequential decrease was primarily due to the decreased employee compensation. SG and A expenses in the fourth quarter were RMB 3,100,000,000.0 or US421.5 million dollars down 5.9% year over year and 8.4% quarter over quarter. The year over year decrease was primarily due to decreased employee compensation and improved operating efficiency.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

The sequential decrease was primarily due to decreased employee compensation associated with recognition of CEOs' performance based awards in the third quarter of twenty twenty four, partially offset by the increased marketing and promotion activities. Income from operations in the fourth quarter was RMB3.7 billion or 507,400,000.0, up 22% year over year and 7.9% quarter over quarter. Operating margin in the fourth quarter was 8.4%, improved from 7.3% in the same period last year and 8% in the prior quarter. Net income in the fourth quarter was RMB3.5 billion or US484 million dollars down 38.6% year over year and up 25.3% quarter over quarter. Diluted net earnings per share attributable to ordinary shares was RMB3.31 or $0.45 in the fourth quarter, versus RMB5.32 in the same period last year and RMB2.66 in the prior quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

And now, turning to our balance sheet and cash flow. Our cash position remains strong and stood at US112.8 billion dollars or US15.5 billion dollars as of 12/31/2024. Net cash provided by operating activities in the fourth quarter was RMB8.7 billion or US1.2 billion dollars worth of RMB 17,300,000,000.0 in the same period last year and RMB 11,000,000,000 in the prior quarter. Free cash flow was RMB US830.1 million dollars in the fourth quarter versus RMB14.6 billion in the same period last year and RMB9.1 billion in the prior quarter. As of 12/31/2024, we had a total of 32,248 employees.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

For more information and details of our 2024 full year financial results, please refer to our earnings press release. And now for our business outlook. For the first quarter of twenty twenty five, the company expects the delivery to be between 181,000 vehicles, representing a year over year increase of 9.5 to 15.7%. The company also expects the first quarter total revenue to be between RMB23.4 billion and RMB24.7 billion or US3.2 billion dollars and US3.4 billion dollars representing a year over year decrease of 8.7% to 3.5%. This business outlook reflects the company's current and preliminary view on its business situation and market condition, which is subject to change.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

That concludes our prepared remarks. I will now turn the call over to the operator and start our Q and A session. Thank you.

Operator

Thank Your first question comes from Paul Gong with UBS.

Paul Gong
Paul Gong
Executive Director at UBS Group

So I will translate my questions. The first one is regarding the BUV launch. Can you remind us the overall the latest launch and timing of the new models and also the highlights of your BUV models you could share with us? The second is regarding the AI strategy. We noticed management is spending more focus.

Paul Gong
Paul Gong
Executive Director at UBS Group

It's increasingly more focus on the AI. And can you please share us with the latest development strategy? Thank you.

Moderator

We're planning to launch two pure electric SUVs this year. The first one being the VI8, which will be launched in July. And the second one VI6 will also be launched in the second half of this year. The two cars will be launched part of the reason we launched it in the second half of this year is partly to catch the sales momentum in typically the sales season of Q3 and Q4 and also partly to save enough orders to support deliveries for next Q1 and Q2. We tend not to release too much information before official product release because we think it needs to be considered holistically with users' buying experience, delivery experience.

Moderator

So please stay tuned for our official product release. First of all, our overall view is that at this stage, the most important thing for artificial intelligence is to grow capabilities, improve capabilities. And I'll provide one example using autonomous driving. Under rule based system, it's very analogous to teaching an insect or primitive creature to drive. And later when we move on to end to end the VLM, it's comparable to a monkey learning drive with a human on-site.

Moderator

It is an improvement versus previous rule based system, but it's still nothing comparable to a professional driver. And this is determined by the fundamental architecture of the models because VLM and end to end are two separate brain systems and neither of them are strong enough. So the real question for us is how can we allow a big model to operate just like human beings, like they could understand the physical world, understand the software world, which includes navigation and a bunch of other things as well as the intentions of the passengers. So we need to build a model that combines all three categories and build them into one foundational model, which includes understanding of physical space using three d vision and understanding of language space using LLM and understanding the physical world using end to end. Only if we combine these three into one model can we understand the world just like human beings and drive like human beings.

Moderator

And this is our overall understanding of breakthroughs in artificial intelligence. And we don't tend to make specific plans in this area.

Operator

Your next question comes from Tim Tsao with Morgan Stanley.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

So my first question is about the sales growth. How should we think about the Lioto's solid sales growth this year against the backdrop of top competition? When would you expect Lioto's monthly sales to be returned to the previous peak level or even cheap record level considering the new Phase III L Series and together with the BEV launches into second half? That's my first question.

Moderator

Our overall strategy for sales growth for this year consists of several aspects. One is product upgrades, expansion of sales network as well as reinforced marketing practices and expansion overseas. First of all, on the product front, we'll be launching the 80 upgraded version of L Series and Mega Series this year, as well as our new completely new bed electric SUV model. The new pure electric SUV will help us tap into a bigger market. In the meantime, our upgraded autonomous driving system, V13, trained on 10,000,000 video clips have also improved its capability significantly, which also forms a solid foundation for our sales growth.

Moderator

On the sales network front, we currently operate five zero two retail stores. And on top of that, we have started to work with after sales partners to increase coverage in Tier four and Tier five cities. Apart from the official stores, we have all apart from these permanent stores, we have also opened over 200 retail stalls and pop up stores, 60 pop up stores and the Shanty Mall to open up our customer acquisition channel. On the marketing front, we have introduced professional live streaming sales representatives to help us open up our customer acquisition channel. In the meantime, with our dedicated DCC call center personnel, we can also increase conversion rate of these increased new customer acquired through those above channels.

Moderator

On the overseas front, our overseas expansion plan is proceeding as planned. And we have made significant progress in Middle Asia, in Asia Pacific and various other markets. We will continue to increase our investments in Latin America, Middle East and European markets. We have also made progress in working with authorized dealers overseas, and through a group of high quality and experienced authorized dealers, we're confident to achieve a major growth overseas this year. And with overall with sales improvement with technology improvements and nimble marketing strategies, as well as expansion of sales network, I'm pretty confident about the overall sales growth this year.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

So my second question is also related to AI, because Liotta has been investing in AI aggressively over the past three quarters. What will be the scale that Liotta's AI relative to invest in the following years? And in addition to two key applications, one is MyGP D Empower, Lishang Dong Zhuo Yi and the other one is for Tantrivi, will there be any new applications for or beyond Vipose in the following quarters? That's my second question. Thank you.

Moderator

Overall, investments in AI related initiatives will take substantial growth in the next few years, but will mainly be funded by our cash from operations. So when we think about this overall positioning of what we need to do in the AI period, I think the first fundamental question is our positioning, because different position requires different types of capability and provide different types of user value. So So let's take an example of after 1975 in the PC world, there emerged Mac making Apple making Macintosh and there was Windows making DOS and sorry, there was Microsoft making DOS and Windows and there were also device manufacturing. And similarly, in the mobile age, there was iPhone and there was Android offering device, OS and open platform and etcetera. Each one of these companies achieved great market success, but they chose different positionings and they used different models and they had to make different trade offs.

Moderator

For example, Apple chose a less open approach and provided better user experience, whereas Android had a more open approach, and but the user experience may not be perfect at all times. So coming back to Li Auto, which one of these positioning should we choose? First of all, we think in the AGI world, our positioning is to become a hardware or device manufacturer. But different from PC or mobile world, device manufacturer for AGI world requires a different set of capabilities and experience. So in general, the device we make in the AGI world or the overall AGI device is broadly speaking a robot.

Moderator

Therefore, it needs to have the cognitive, the execution, the feedback, the reasoning and decision making capabilities. And that, of course, includes software AI functionalities, OS on software side and on the hardware side includes not only the physical movement pieces, but also the computing power. And on top of that, it also requires operation. We need a robust system to operate these devices in the AGI world. We can't simply rely on an IP software.

Moderator

Probably we need to use something more like a world model. So how do we manage these silicon based devices is also going to change and at the same time how we manage carbon based human beings are also going to be also going to change and they're going to be managed differently. So in the AGI world, to sum up, we want to become a device maker providing with the above capabilities. The second thing we need to think about is user scenario. And from this point, I can see three types of robots in general.

Moderator

The first is more closely L4 vehicle or we call space robot. It can navigate itself in open space with its own cognition and decision making and execution power. The second type is the type of robot that enhances human capabilities. And the third one, which I think is the most difficult one operates indoors. It has the shape of a human being and it can navigate itself.

Moderator

So these are the three different robots that I see in the AGI world and they combined pretty much cover all aspects of human life and we want to be a maker of all these devices, so we can provide services to our users in different scenarios. It is comparable, for example, to Apple, which provides the Macintosh, the iPhone, the iPad and iWatch, which covers different aspects of users' life. Here's our latest thinking for the next three to five years and probably even longer and we'll iterate over time.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

Thank you.

Operator

Your next question comes from Tina with Goldman Sachs.

Tina Hou
Tina Hou
Analyst at Goldman Sachs

Thanks management for your time. So my first question is in terms of the 2026 outlook, in terms of the, I think, overall auto industry and EV industry, your volume outlook as well as the competition intensity. And then also, this year, the competition is mainly focused on autopilot. So next year, do you see a continuation or change in that? And then the second question is regarding autonomous driving itself.

Tina Hou
Tina Hou
Analyst at Goldman Sachs

So in the future, in the world of L3 and L4 becoming more like prevalent, does management think there is a monetization method for these autonomous driving software? Thank you.

Moderator

First of all, on industry and competition, we believe that the penetration rate of NEV will continue to increase in 2026. But market competition will transition from competing for growth to competing for market share. Brand will play a very important role in users' purchase decisions and users tend to choose brands that are well known and have good word-of-mouth. In different price segments, the top brands are going to increase market share through their advantages in product, technology, brand and overall service experience. In other words, the market concentration is going to continue to increase.

Moderator

Another trend that we see is many car brands will continue to improve and accelerate their development of advanced autonomous driving. The competition here is going to be more intense. On the technology front, technologies like drive by wire, which includes write and handling experience, technologies like AI cockpit, which includes user interaction experience will also become a focus of competition in 2026 and beyond. And for Ali Auto, our strategy is to continue to complete our product portfolio with many cars several cars launching in 2026, we will complete our full coverage of the range extended at Pure Electric product matrix, covering different price ranges and different segments and to cater to more users as many users as possible. In the meantime, we'll increase our investments in autonomous driving and other artificial intelligence technologies to maintain our lead in product in overall product experience.

Moderator

We will also expand our expansion of our supercharging network and increased coverage as well as service experience and to fully eradicate brain anxiety for our users. Apart from the domestic market, we will work with different types of partners through different methods to accelerate our growth in overseas sales and service networks. Thank you. On L3 and L4, so coming back to the current stage of including L2 and L3, they're essentially machines assisting humans to drop. They're really tools.

Moderator

There may be different approaches to L2 and L3, but the main difference is in the range of usage, the coverage of usage and also the availability of different features. But fundamentally, it's really still the human driver taking control of the car. There's no fundamental change in the relationship between human and the car. But as we evolve to L4, this car will become an agent or we call a driver agent. So there's going to be a fundamental change between the human and car relationship.

Moderator

The autonomous driving system will evolve from just being a tool to become an actual agent that can replace human beings in driving. It's comparable to hiring a professional driver. In this scenario, we believe that users will be willing to pay for this kind of service. And on top of that, when users are relieved from the burden of driving, cars will become a robot or we call space robot that can navigate the physical world in the AIH. And in this era, the in car information in the in car software and experience and services will have greater value and may lead to new business models, which give us more room for imagination.

Moderator

So with the huge potential of L4 Era, our team is already very actively exploring and our goal is to capture this very big opportunity when the time of L4 comes. Thank you.

Operator

Your next question comes from Binh Lang with Deutsche Bank.

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

My first question is about the first quarter gross margin guidance. We have been noticing some of the positive side from the components pricing deduction. We also noticed that you provide some cash discount. So can you provide the first quarter gross margin guidance? Thank you.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Hi, Momin, this is Henry here. And the first quarter is the low season due to Chinese New Year and also we have some sales promotion after Chinese New Year. So all that concludes together, we expect our Q1 vehicle gross margin to be around 19%.

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

Great. Great. Second question. My second question is about media reports the Chairman actually will no longer take care of the auto business and the focus was shifting to the AI R and D. Can I my question is that, what's the change in the management allocation and how to balance the vehicle business and the upcoming AI business? Thank you.

Moderator

Mr. Li is still the CEO of the company and he still oversees the different departments related to the car business, including vehicle lines, including product department, branding and strategy department. This remains unchanged from 2024. And we have allocated new responsibility under our BLM and PDST framework, assign new person in charge. And we remain devoted to relying on efficient collaboration across the company to support our success in the long term.

Operator

Your next question comes from Yingbo Zhu with Scitech Securities.

Yingbo Xu
Analyst at CITIC Securities Company

So I have two questions. The first one is how is the mega market performance and what's our expectation or plan for mega in future? And the second question is what's our long term plan for internationalization? Thank you.

Moderator

Li Mega is a luxury pure electric MPV priced at over RMB500000 and it has been the number two in sales in this segment for many consecutive months, only second to the Toyota Alphard. This year, we hope that the Mi Mega will remain top three in this segment and with expected annual sales between 10,000 and 15,000. On top of that, Li Mega is one of the cars with the highest Net Promoter Score among our product portfolio. In periods like the Chinese Sprint Festival, Li Mega has been widely praised for its chassis, seat comfort, NVH smart cockpit, autonomous driving and highway five C charging experience it has significantly exceeded our user expectation, which further led to an increase in mega NPS after the spring festival, which speaks to user satisfaction with the product and services and their willingness to recommend the car to people around them. In the meantime, we are the number of our directly operated 5C charging stations has exceeded 1,900.

Moderator

So mega users, whether they're driving on highways or driving in cities, they have easy access to five seat charging experience, which eliminates any anxiety with charging on long road trips. In the meantime, we're also accelerating our rollout of more five seat supercharging stations. And as planned, we will have over 2,000 stations by the end of the first quarter, connecting the five transfers and the nine transfers and nine longitudinal highway routes in China. By the time we launch Li i8 this year, we expect to have over 2,500 stations of supercharger stations. And in April, we plan to cover the entire distance of the G318, a well known Chinese roadway, so that our mega users can drive their cars on G318.

Moderator

And we also have plans to open up 50 travel routes or road trip routes to provide easy charging experience for our users. By the end of this year, we will be our charging stations will be covering over 67,000 kilometers of highway and over 10,000 of inter province highways, totaling over 77,000 kilometers. And we have already built four eighty three charging stations across the four major economic zones in China with an average interval of 99 kilometers. By the end of this year, we will be covering all of our four economic zones with highway supercharging stations. As we continue to build out our supercharging stations and as we roll out VI8 and other pure electric models with the scale economy of scale, we are very confident in the sales volume of Li Mega.

Moderator

In 2025, we are very aligned that overseas expansion is going to be one of the core strategies of this company. So we will be devoted to expanding the overseas market and building capabilities across branding, marketing, channel and after sales as well as organization and recruiting. At the beginning of this year, we have or had already established an independent overseas expansion department and have moved many experienced personnel from the company. On the market front, we will be building on this luxury brand image that we have already established in Middle Asia and other markets to expand our market share. In the meantime, in the past year, we have already built service centers and after sales centers in Kazakhstan, Uzbekistan and UAE.

Moderator

At the same time, we'll also provide original spare parts and tech support to qualified after sales partners so that our overseas customers can enjoy the same level of service that we provide to our domestic customers. In the meantime, we also expand our market in Middle East, Latin America and Asia Pacific. We'll be working with high quality local partners to expand our overseas market. We'll also be picking a small number of dealers as our local partners to expand the market together. We'll also expand our marketing and building out a very complete after sales market after sales network.

Moderator

2025 is our first year of officially launching into the overall overseas market and we will be building on capabilities that we have built in the domestic market and we're confident to have made significant progress in the overseas market this year.

Operator

As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Zhang, please go ahead.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Thank you once again for joining us today. If you have further questions, please feel free to contact Liotta's Investor Relations team. That's all for today. Thank you and have a nice weekend.

Executives
    • Janet Zhang
      Janet Zhang
      Director of Investor Relations
    • Tie Li
      Tie Li
      CFO & Executive Director
Analysts
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