JAKARTA - Competition in the Chinese electric vehicle industry is heating up after two major manufacturers, Li Auto and Nio, engaged in an open debate on the future of long-distance electric vehicles or Extended Range Electric Vehicles (EREV). This debate reflects the increasingly intense competition in determining the direction of new energy vehicle technology in the country.
Founder, Chairman, and CEO of Li Auto, Li Xiang, through his personal Weibo account on June 17, responded to views that long-distance electric vehicles are starting to lose their appeal in the market. According to him, the assumption is not appropriate and risks underestimating the entire EREV segment.
Quoted from Cnevpost, Friday, June 19, Li emphasized that battery-based pure electric vehicles (BEV) and EREV have different consumer targets. Therefore, he invited industry players to stop the habit of comparing the two technologies by dropping one of them.
He also highlighted the fact that more than 40 percent of vehicle consumers in China to date still choose gasoline-powered cars. Even in the premium five-passenger SUV segment, conventional models such as the BMW X5 and Mercedes-Benz GLE are still the choice of many buyers.
The statement then triggered a response from Nio's sub-brand Onvo President, Shen Fei. In a Weibo post on June 18, Shen confirmed that his party would continue to focus on strengthening sales of pure electric vehicles throughout the second half of this year.
Shen quoted the latest data showing that the penetration rate of new energy vehicles (NEV) in China reached a record 62.9 percent in May. From this figure, the market share of EREV fell to 7 percent, while BEV increased to 67 percent.
According to him, this trend shows that battery-based electric vehicles are now a major force that is difficult to stop. He also added that for six consecutive months, the largest SUV model with the highest sales came from the BEV category.
To strengthen his argument, Shen even conducted a poll on Weibo asking his followers to choose between a full-battery-powered five-passenger SUV or a model with remote technology.
Behind the debate there is a fairly sharp difference in strategy between the two companies. Nio is one of the automotive manufacturers that only develops pure electric vehicles, while Li Auto is known as a pioneer and a major player in the EREV segment.
Data from the China Passenger Car Association (CPCA) shows a favorable trend for pure electric vehicles. In May 2026, retail sales of EREV were recorded at 85,000 units, down 28 percent compared to the same period last year despite an increase of 11.2 percent compared to the previous month.
Meanwhile, BEV retail sales reached 637,000 units in the same period or increased 3.9 percent year-on-year. Overall, new energy vehicle retail sales reached 950,000 units in May, although it fell 7.5 percent from the previous year and became a consecutive five-month annual contraction.
This debate is in line with the views of Nio's Founder, Chairman, and CEO, William Li, who previously stated that the golden age of EREV-based three-row SUVs was over. According to him, the industry is now entering a new era dominated by pure electric vehicles.
Nio itself is enjoying a positive momentum thanks to its electric SUV lineup. The ES8 model, which starts at 406,800 yuan, managed to record sales of 11,475 units in May, while maintaining a performance of over 10,000 units for seven consecutive months.
In addition, the latest premium SUV ES9 which is marketed starting at 498,000 yuan also received a positive response. In fact, the delivery waiting time for the highest variant is currently 16 to 17 weeks.
On the other hand, Li Auto faces a bigger challenge. In May, the company only delivered 33,350 vehicles, down 18.37 percent compared to the same period last year.
Demand for their EREV product line has also been under pressure. The four main models, namely Li L6, Li L7, Li L8, and Li L9, continue to record annual sales declines over the past year.
To improve the situation, Li Auto carried out a massive refresh on the L-Series family. The company has launched the latest Li L9 on May 15, while the new generation Li L8, which has now changed from a six-seat configuration to a five-seat configuration, is scheduled to launch on June 23. As for the updated Li L6 version, it will start being marketed in July.
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