On August 28, 2024, Li Auto announced its Q2 2024 financial report. The newly launched Li L6 became a bestseller. Li Auto delivered 108,581 new vehicles in Q2, a 25.5% increase year-on-year. Q2 revenue reached 31.7 billion yuan, up 10.6% year-on-year. The company’s operating efficiency improved in Q2. Adjusted net profit stood at 1.5 billion yuan, with a gross margin of 19.5%.
In the second quarter, Li Auto invested 3 billion yuan in R&D. They allocated 10% of revenue to core technologies like smart driving, smart space, smart electric, and vehicle safety. In July, Li Auto fully rolled out unlimited city and road NOA to 240,000 AD Max users. They also launched the industry’s first dual-system smart driving architecture based on end-to-end and visual language models. Testing with a thousand users occurred in July. On August 21, Li Auto’s total deliveries surpassed 900,000 vehicles, setting a new record for Chinese new forces and luxury brands. For the third quarter, Li Auto expects quarterly deliveries to reach between 145,000 and 155,000 vehicles, a year-on-year increase of 38.0% to 47.5%. They forecast total revenue between 39.4 billion and 42.2 billion yuan, marking a year-on-year growth of 13.7% to 21.6%.
Ideal Automotive embraces AI technology while sales continue to grow. The company optimizes cost efficiency and production effectiveness. It accelerates product development, supply chain, manufacturing, and sales services. Despite the new model Ideal L6 ramping up production and a new pricing system launched in Q2, the gross margin remains stable at a healthy 19.5%. Ideal Automotive views in-house core technology development as a key to long-term success. In 2024, the company invests 3 billion yuan in technology research and development for two consecutive quarters. This drives high-frequency, high-quality product iterations that exceed user expectations. In July, Ideal Automotive rolled out significant OTA updates 6.0 and 6.1 for the Ideal MEGA and Ideal L series, enhancing smart driving, smart space, and smart electric capabilities. In July 2024, Ideal Automotive launched the “No Map NOA” to 240,000 Ideal AD Max users. This feature operates independently of prior information and works in cities with navigation coverage, significantly improving user experience. Since the No Map NOA experience began in May, test drive rates at stores have doubled, boosting overall vehicle orders. With the full rollout of No Map NOA, the smart driving penetration rate exceeds 99%, and total mileage for all scenarios has surpassed 1.11 billion kilometers.