Li Auto lowers the prices of its first electric SUV just a week following its launch.

      Li Auto CEO Li Xiang addressed a press conference in Beijing on Tuesday, July 29, 2025. Credit: Li Auto

      In a bid to boost sales of its inaugural all-electric sports utility vehicle, Li Auto has slashed the price of the Li i8 by as much as RMB 20,000 ($2,782) just a week after its debut. Sales representatives are also working to ramp up test drive appointments in response to lower-than-anticipated demand, as observed by a TechNode reporter.

      Why it's important: This decision arises as the Li i8 appears to be echoing the struggles of Li Auto's previous all-electric model, the Mega, which faced significant setbacks during its launch last March, partly due to its contentious design. Li Auto, which has been offering extended-range hybrid EVs (EREVs) for several years, is encountering dwindling demand for its aging and less varied product range.

      During a livestream on Douyin, TikTok's sister app in China, Li Xiang revealed that the company received over 30,000 reservations with RMB 5,000 refundable deposits. However, only about 6,000 customers converted their reservations into purchases in the initial week following the July 29 launch, according to Sun Shaojun, founder of the consumer behavior research firm CarFans.

      Details: On Tuesday, Li Auto announced (in Chinese) that it would now offer only one version of the i8, instead of the previously planned three, reducing the price of the i8 Max by RMB 10,000 to RMB 339,800 ($47,266).

      Customers can still obtain the earlier top model, the i8 Ultra, by adding features and optional equipment to the Max variant for a total price of RMB 349,800, which is RMB 20,000 lower than before, per the announcement (in Chinese).

      Simultaneously, the entry-level i8 Pro, which includes a smaller battery and basic pilot functions, is now unavailable. Li Auto indicated that the base version accounted for less than 2% of reservations thus far. The company has committed to offering refunds or exchanges for those who reserved the Pro version.

      Sales personnel are reportedly facing challenges enticing consumers to test drive the i8, as store traffic remains sluggish, noted the China Auto Think Tank on Monday. A TechNode reporter was also encouraged to schedule a test drive when interacting with a Li Auto salesman on Tuesday.

      Context: Li Auto is encountering stiff competition from NIO, as both firms launched their family-oriented, large crossovers last week. Li Auto's shares listed in Hong Kong saw a 5.3% drop on Wednesday.

      NIO’s more affordable and spacious Onvo L90 is gaining momentum, with sales of the Onvo brand increasing by 143% week-over-week to 3,697 units from July 28 to August 3, according to a note from Jefferies analysts dated August 5. In contrast, Li Auto's sales of 5,471 units represented a 26% decline compared to the previous week.

      READ MORE: Tit-for-tat battle flares between China’s NIO and Li Auto over three-row SUVs

      Jill Shen is a technology reporter based in Shanghai, covering Chinese mobility, autonomous vehicles, and electric cars. Connect with her via email at [email protected] or on Twitter at @jill_shen_sh. More by Jill Shen.