Chinese electric-vehicle (EV) maker Li Auto has set up its international headquarters in Hong Kong, paving the way for its overseas expansion amid intensifying competition at home.
The Hong Kong operations would serve as a strategic base for the Beijing-based carmaker to “oversee its research and development [R&D], intellectual property management and international supply chain functions”, said InvestHK, the Hong Kong government’s investment promotion arm, in a statement on Thursday.
Li Auto, one of the few profitable EV makers in mainland China, is the latest car company to set up operations in the city, which is increasingly viewed as a stepping stone for their global ambitions.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Domestic rivals such as BYD, the world’s largest EV builder, and Zeekr, a unit of Geely Auto, sell their smart EVs in Hong Kong, while BeyonCa, a start-up backed by Renault, plans to assemble EVs in the city soon.
A Li Auto L6. The company is one of the few profitable EV makers in mainland China. Photo: Reuters alt=A Li Auto L6. The company is one of the few profitable EV makers in mainland China. Photo: Reuters>
Hong Kong-listed Li Auto was actively planning to further expand its presence in the city and grow its local team before further developing its global businesses, according to InvestHK.
“This is a strong testament to Hong Kong’s dual advantages as an international innovation and technology (I&T) hub and a leading global financial centre,” said Loretta Lee, InvestHK’s associate director general of investment promotion. “Hong Kong boasts world-class scientific research talent, a vibrant capital market and a legal system aligned with international standards, making it the ideal gateway for the mainland’s leading I&T enterprises to go global.”
Chinese EV makers, in the face of excess capacity and fierce price competition on the mainland, have doubled down on their overseas expansion this year, hoping to take advantage of their design and manufacturing heft to compete against the likes of Volkswagen and Toyota.
Li Auto, a Tesla rival on the mainland, handed 33,951 units to customers in September, down 36.8 per cent from the same period in 2024, extending a decline for the fourth consecutive month.
“Hong Kong provides us with unparalleled resources and a platform to help Li Auto achieve greater breakthroughs on the global stage,” said Wang Teenqi, financial compliance manager of Li Auto. The Hong Kong government’s forward-looking strategy for an artificial intelligence ecosystem and its favourable policies were key factors that attracted the company, he added.
