Key Takeaways:
- Li Auto launched the L6 Ultra at 249,800 yuan with a self-developed Mach M100 chip
- Battery range increased 88 km to 300 km as per-vehicle costs rose 14,000 yuan
- June L6 deliveries plunged 94% as buyers waited for the refresh
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Li Auto launches new L6 at 249,800 yuan with in-house chip
Li Auto absorbed a 14,000 yuan cost increase per vehicle to keep the new L6 Ultra at 249,800 yuan, betting the self-developed Mach M100 chip will drive volume.
Li Auto on Thursday launched the new-generation L6 extended-range SUV at 249,800 yuan ($36,910), equipping its best-selling model with an in-house chip that matches the computing power of its flagship L9.
"The new L6 will not only be the best in its class, but also deliver experiences that punch above its class," Li Xiang, founder and chief executive officer of Li Auto, said at the launch event.
The single Ultra variant replaces the previous Pro and Max trims, which started at 249,800 yuan and 279,800 yuan, respectively. The battery capacity jumped 39% to 51 kilowatt-hours from 36.8 kWh, extending the CLTC battery-only range by 88 kilometers to 300 km. The vehicle can charge from 20% to 80% in 12 minutes, eight minutes faster than its predecessor.
The launch comes as Li Auto's sales momentum stalls — June deliveries fell 14.84% year on year to 30,895 vehicles, while the outgoing L6 saw just 915 units, a 94.44% plunge. The company posted a net loss of 2.3 billion yuan in the first quarter, with gross margin halving to 7.9% from 20.5% a year earlier.
The Mach M100 chip, built on a 5-nanometer process, delivers 1,280 TOPS of computing power as standard — the same generation used in the new Li L9 priced at nearly 500,000 yuan. Buyers can option a dual-chip configuration for 20,000 yuan at a limited-time discount, boosting compute to 2,560 TOPS and adding three more LiDARs for a total of four. The sensor suite includes seven 800-megapixel perception cameras and four 300-megapixel surround cameras with UWB proximity sensing.
The pricing decision carries margin risk. Local media outlet Leiphone reported that per-vehicle costs rose by more than 14,000 yuan because of higher memory chip and lithium carbonate prices. By holding the line at 249,800 yuan, Li Auto is absorbing the cost pressure rather than passing it to consumers — a strategy that could compress margins further if volume does not materialize.
Deutsche Bank analyst Wang Bin said in a research note that the new L6 is expected to be a significant driver of Li Auto's sales. The model has been the company's volume leader since its original launch, and the refresh adds features that were previously exclusive to higher-priced models. The 29-inch 6K panoramic display powered by a Qualcomm Snapdragon 8797 chip and the optional 21-inch 4K rear entertainment screen bring cabin technology on par with the L9.
Li Auto has now refreshed three of its five extended-range models. The revamped L9 launched May 15, followed by the five-seat L8 on June 23. The L7 remains the only L-series model without an announced update.
The competitive stakes are high. Li Auto's rivals in China's premium EV segment — including Nio, XPeng and Tesla — are all racing to integrate in-house chip development to reduce reliance on Nvidia's Orin platform. Li Auto's Mach M100 gives it a potential cost advantage in compute hardware, though the chip's real-world performance against Nvidia's offerings has not been independently verified.
Li Auto shares, listed on Nasdaq, have declined about 40% this year as the company navigates the transition from rapid growth to margin defense. The new L6's success will be measured not just in units sold, but in whether the volume can restore gross margins toward the 20% level the company delivered a year ago.
This article is for informational purposes only and does not constitute investment advice.
