Li Auto, one of the leading Chinese new energy vehicle brands, has recently attracted widespread attention with its moves in the overseas market. According to a report from Red Star Capital, Li Auto’s first overseas direct-service center, located in Almaty, Kazakhstan, began its trial operation at the end of June and is planned to officially open in July. This move marks Li Auto’s initial foray into the overseas market.
Li Auto’s choice of Kazakhstan as the starting point for its overseas services is closely related to the number of its vehicles in the country. Reports indicate that the number of Li Auto vehicles in Kazakhstan has exceeded 1,000, with growing demand for after-sales services. Li Auto has stated that, in addition to Kazakhstan, the company is planning to establish direct-service centers in other countries in the Middle East and Central Asia to meet the increasing market demand.
However, although Li Auto’s after-sales service setup in the overseas market has begun, its retail export business is still in the planning stages. Currently, Li Auto’s vehicles are primarily sold abroad through parallel exports, meaning they are purchased by trading companies and re-exported rather than through official company channels or authorized dealers. Li Auto has clarified that the company is currently focused on domestic market sales and has not authorized any organization or individual to sell its products and services. The future goal is to implement a direct-sales model in overseas markets.
It is noteworthy that Li Auto CEO Li Xiang has publicly stated that Li Auto will not aggressively pursue overseas market operations before 2025 and will focus resources on achieving the goals set for 2025. This goal includes ranking first in luxury brand sales in the Chinese market and achieving an annual delivery volume of 1.6 million vehicles.
On the other hand, according to well-known automotive blogger Han Lu, the density of Li Auto vehicles in Almaty, Kazakhstan, is very high, even exceeding that in some cities in China. He mentioned that one can see a Li Auto vehicle every three minutes on the road, and the feedback from owners has been positive except for some limitations with the map function. These vehicles are parallel-exported to Kazakhstan by traders, with prices remaining consistent with the domestic market, raising questions about how traders achieve profitability.
Overall, Li Auto’s strategy in the overseas market is cautious and well-planned. Although large-scale retail operations have not yet been launched, the establishment of direct-service centers is laying the foundation for future in-depth overseas market development. At the same time, Li Auto’s overseas market goals are clear: to focus resources on achieving domestic market leadership by 2025 and to maintain a direct-sales model in overseas markets to ensure consistency in brand and service.
