Li Auto Inc. $LI has issued a second-quarter revenue forecast notably below market consensus, highlighting intensifying hurdles within the world’s largest automotive landscape. The company now anticipates Q2 sales between RMB 32.5 billion and RMB 33.8 billion (approximately USD 4.5–4.7 billion), undercutting the average analyst estimate of RMB 34.6 billion. This downward revision follows ongoing pricing battles and softer consumer demand, which continue to reshape the outlook for Chinese electric vehicle manufacturers.

Chinese electric vehicle leader BYD Co. $1211.HK saw its shares fall by up to 8.3% on the Hong Kong exchange after a substantial round of price reductions. The automaker slashed prices on 22 electric and plug-in hybrid models by as much as 35% late last week, triggering investor anxiety about escalating competition in China’s crowded new energy vehicle (NEV) market. In parallel, sector peers Li Auto Inc. $2015.HK, Great Wall Motor Co. $2333.HK, and Geely Automobile Holdings Ltd. $0175.HK all dropped over 5% in value during Monday trading, underscoring market-wide concerns.