Company: LI
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001410578-25-000678
Chunk: 27

Company: Li Auto Inc.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 27
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 orders will not be canceled and will ultimately result in the final purchase, delivery, and sale of the vehicles. Such cancelations could harm our business, brand image, financial condition, results of operations, and prospects.
Our future growth is dependent on the consumer demand for NEVs.
The demand for our vehicles will highly depend upon consumers’ demand for and adoption of NEVs, including EREVs and BEVs. The market for NEVs is still rapidly evolving, characterized by rapidly changing technologies, intense competition, evolving government regulation and industry standards, and changing consumer demands and behaviors.

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Other factors that may influence the adoption of NEVs include:

●   perceptions about vehicle safety in general, in particular safety issues that may be attributed to the use of advanced technology, including BEV and EREV technologies, regenerative braking systems, and autonomous driving;
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●   perceptions about NEV quality, safety, design, performance, and cost, especially if adverse events or accidents occur that are linked to the quality or safety of NEVs, whether or not such vehicles are produced by us or other automakers;
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●   concerns about electric grid capacity and reliability and the availability of other supporting infrastructure;
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●   the availability of servicing for NEVs;
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●   the actual or perceived deterioration of battery capacity over time;
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●   the environmental consciousness of consumers;
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●   access to charging stations and cost of charging vehicles;
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●   the availability of tax and other governmental incentives to purchase and operate NEVs or future regulation requiring increased use of nonpolluting vehicles;
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●   improvements in the fuel economy of the ICE vehicles; and
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●   macroeconomic factors.
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Any of the factors described above may change the consumer demand for our vehicles, including causing current or prospective users not to purchase our vehicles. If the market for NEVs, and HPC BEVs in particular, does not develop as we expect or develops more slowly than we expect, our business, financial condition, results of operations, and prospects will be affected.
Our future growth is dependent on the consumer demand for passenger vehicles, the prospects of which are subject to many uncertainties.
China is currently one of the world’s major automotive markets, especially in terms of passenger vehicle sales volume. China’s passenger vehicle market experienced fluctuations previously, and we cannot predict how the consumer demand for passenger vehicles will develop in the future. Amid the market slowdown, certain automakers operating in China have