JAKARTA - Chinese electric vehicle manufacturer Li Auto, is reportedly preparing a major move to overhaul its retail network. Citing a number of Chinese media reports, the company plans to close around 100 low-performing stores in the first half of 2026.

Launching from Carnewschina, Tuesday, January 27, the closure is said to target outlets with weak sales performance. This includes stores located in shopping centers in large and medium cities.

This move was taken amid sales pressure and rising operating costs, as reported by Sina. Based on its financial statements as of December 31, 2025, Li Auto operates 548 retail centers of its own spread across 159 cities.

Meanwhile, the company's official website lists a total of 904 retail centers across China, including light asset-based partner stores that are part of a program titled the Hundred City Star Plan. The difference in the numbers reflects Li Auto's strategy, which now relies not only on its own outlets, but also on cooperation locations built with local partners.

This restructuring is part of Li Auto's efforts to improve operational efficiency. The company began to stop operating stores in shopping malls with high rental costs, while prioritizing expansion to the AutoPark automotive area.

Unlike mall outlets, AutoPark locations generally provide more spacious space with integrated functions. Starting from sales, delivery, to vehicle maintenance with lower rental costs.

At the same time, Li Auto continues to push the Hundred City Star Plan to expand its reach in tier three and four cities. Through the light asset scheme, the company shares the cost of renovation and equipment with local partners, thereby reducing investment risks while accelerating market penetration in non-core areas.

Responding to rumors of mass store closures and massive layoffs, Li Auto confirmed that the news was not entirely true. The company said only a small number of low-performing shopping mall stores would be closed this year, and not a large-scale closure.

This efficiency step is inseparable from the fluctuating delivery performance. In December 2025, Li Auto recorded 44,246 units of vehicles delivered.

The figure contributed to a total fourth-quarter shipment of 109,194 units, with an accumulated 1,540,215 vehicles by the end of the year. Throughout 2025, Li Auto recorded shipments of around 406,000 units, down 18.8 percent year-on-year.


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