Things aren't getting better for Li Auto Inc. (LI). The Chinese EV maker reported Saturday that it delivered 27,668 vehicles in January 2026, representing a 7.55% year-over-year decline. That brings the company's cumulative deliveries to 1,567,883 units, but the trend lines tell a grimmer story.
This marks the eighth straight month of falling deliveries for Li Auto, with January's figure hitting the lowest level since March 2025. The month-over-month drop was even more dramatic: deliveries plunged 37.47% from December, according to CnEVPost. The culprit? Intensifying competition is hammering the company's L-series hybrid models, while its electric i-series SUVs face persistently weak demand.
Expanding Infrastructure, Contracting Sales
Li Auto continues to build out its physical presence across China, which makes the delivery slump all the more concerning. As of January 31, 2026, the company operates 547 retail stores spanning 159 cities, along with 547 service centers and authorized shops in 221 cities.
The charging infrastructure is equally ambitious: 3,966 supercharging stations across China equipped with 21,945 charging stalls. That's a lot of infrastructure for a company watching its sales drop month after month.
A Tale of Three Rivals
Performance among China's major EV players couldn't be more scattered right now.
XPeng Inc. (XPEV) had a rough January too, reporting 20,011 vehicles delivered—a 34% year-over-year decline that sent shares sliding Monday.
Meanwhile, Nio Inc. (NIO) delivered a standout performance with 27,182 vehicles in January, representing a stunning 96.1% year-over-year surge. That's nearly identical volume to Li Auto but moving in completely opposite directions, highlighting just how fragmented China's EV market has become.
Recall Woes Still Lingering
Li Auto's struggles aren't exactly new. Back in November 2025, the company reported a steep decline in fiscal third-quarter results, weighed down by lower deliveries, margin compression, and costs tied to a major vehicle recall.
Vehicle sales dropped 37.4% to $3.6 billion in that quarter, driven primarily by weaker delivery volumes. The patterns established then seem to be continuing into 2026.
LI Price Action: Li Auto shares were down 0.78% at $16.50 during premarket trading on Monday. The stock is hovering near its 52-week low of $15.71.
