Alibaba

Baidu

ByteDance

Meituan

Pinduoduo

Tencent

Most Followed

KrASIA Connection

China's Auto Sector

Earnings Reports

Inside China's Startups

Venture Roundup

Our Events

View All

Collections

News

Features

Insights

Ecosystem

DeepSeek

Kuaishou

Li Auto

Xiaohongshu

Xiaomi

Xpeng

On the Radar

Events

Latest

About

36Kr (EN)

Consumer

Robotics

Fintech

Deals in brief: Lenovo’s Leshines gains Saudi backing, Ampd Energy and Ensonic secure funding, Swiggy bags USD 606 million from anchor investors, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

Saudi Arabia

Southeast Asia

China

India

Middle East

… September, it launched <a href="https://daoinsights.com/news/and-did-the-star-buck-in-ancient-time-starbucks-debuts-microdrama/">I Opened a Starbucks in Ancient Times</a>, which reportedly attracted over 170 million views and over a million interactions.
Sources close to Starbucks told 36Kr that the minidrama preserved the brand’s values, focusing on quality coffee, attentive service, and a sense of partnership. To connect locally, the storyline incorporated traditional Chinese themes and a touch of romance. In one scene, the male lead confesses his feelings by making a caramel macchiato for the female lead—a symbol of sweetness from the heart.
Starbucks has spent 25 years growing in China, propelled not just by products or promotions but by the concept of a “third space.” This may explain why Niccol is doubling down on Starbucks' identity as a community hub. Rather than battling on unfamiliar ground with aggressive discounts and endless product options, Starbucks may find it wiser to shore up its original strengths.
In a twist, a day before Luckin’s earnings release, reports surfaced that the Chinese coffee giant is planning an entry into the US market next year, with adjustments underway in supply chain and technology.
Luckin aims to target US cities with high populations of Chinese students and tourists, leveraging its affordable coffee experience from China. Plans are reportedly in place to offer coffee at USD 2–3, undercutting US rivals, and the company has been airing ads during NBA games to build recognition ahead of the launch.
In an open letter to customers, partners, and stakeholders during his first week, Niccol reaffirmed Starbucks’ commitment to its roots, pledging to focus on four areas: empowering baristas, caring for customers, seizing each morning, reinforcing Starbucks as a community coffeehouse, and telling the Starbucks story.
Returning to basics may be a noble pursuit, but the immediate challenge remains: Starbucks will soon face its largest competitor from China, right on its home turf.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3017398123341063">article</a> was written by Li Xiaoxia for 36Kr.

With Luckin Coffee on the rise, Starbucks scales back discounts and returns to its roots

Starbucks

Coffee

… startup that has achieved this is UrbanMetry, a data analytics company that uses novel indicators to track urban lifestyle patterns and unlock opportunities for real estate investors. Government capacity gaps in Southeast Asia make it difficult to obtain reliable data about the region’s cultural and physical landscapes across different geographies, which is crucial for informed real estate and property investment decisions. Without accurate information, investors struggle to assess risks and allocate resources effectively, which can lead to misaligned products, ultimately stymying investment.
UrbanMetry’s climate risk assessment project in Malaysia, which maps local areas prone to landslides and floods and overlays these with mortgage data, has managed to not only identify potential hazards but also guide future urban planning and disaster mitigation. Not only does this help property developers, governments, and banks in generating comprehensive risk evaluations for properties, it also paves the way for smarter, more resilient cities.
The journeys of eFishery and UrbanMetry underscore the power of embracing experimentation and innovation at the fringes. For startups, this approach creates a first-mover advantage, revealing insights and solutions others have yet to uncover.
<h3>Innovating with people and planet at the center</h3>
Innovation shouldn’t just be technology-centric—it also needs a human touch.
When developing solutions, startups must consider not only practical needs but also the human aspects of their products or services. This involves addressing specific cultural needs that may be underserved—a consideration especially relevant in a region as diverse as Southeast Asia, with its array of cultures, languages, and religions.
For example, Indonesian fintech provider Hijra has achieved a 99.7% repayment rate on its Shariah-compliant financing, rapidly becoming the largest fintech startup within the Islamic finance market. Hijra’s edge was in recognizing the unmet demand for Shariah-compliant financial services in a region where Islam is the most widely practiced religion. By aligning its offerings with cultural values and religious principles, Hijra not only builds trust within the community but also demonstrates how a human-centric approach can drive significant growth and impact in underserved markets.
Another area for innovation lies in conscious consumerism. <a href="https://cube.asia/better-for-you-young-urban-consumers-are-trading-up/">92%</a> of Generation Z and Millennial consumers in Southeast Asia prioritize health, social and environmental attributes in their purchasing decisions. By aligning business practices with these values, startups can tap into demand for socially and environmentally responsible products, fostering deeper consumer loyalty and engagement beyond price and functionality.
Furthermore, sustainable innovation also provides a competitive advantage. An example is A Little Wild, Southeast Asia's first commercial-scale farm that has used syntropic agroforestry—a form of regenerative agriculture—to transform 10% of a 138-acre oil palm plantation. In these restored plots, carbon capture is twice that of traditional oil palm areas. This is achieved using closed-loop systems for resilience and self-sufficiency that merge indigenous knowledge with scientific rigor, enhancing farming techniques to give degraded land a new lease of life. The farm’s produce appeals in particular to eco-conscious consumers willing to pay a premium for sustainably grown agricultural products.
By rooting themselves in a purposeful mission, startups stand to resonate with a wider audience that shares the same values.
<h3>A sea of opportunity for those who find their edge</h3>
Beyond traditional innovation hubs like Silicon Valley, Southeast Asia offers many avenues and resources that startups can tap on. But challenges are  plenty too. The sheer diversity in cultures and languages pose a barrier to scaling, as solutions must be tailored to local customs and linguistic requirements.
Additionally, the receptiveness of more traditional companies to new ideas and technologies remains a hurdle. The challenge and opportunity lie in convincing these companies that collaborating with innovative outfits can help them derisk the adoption of new ideas, while helping them stay relevant in a rapidly evolving marketplace.
Ultimately, the unique challenges Southeast Asia presents can also serve as a <a href="https://www.tatlerasia.com/gen-t/innovation/four-drivers-of-innovation-in-southeast-asia-2024">catalyst for creativity</a>. By drawing from the strategies of the region’s innovators, startups can find inspiration to identify new, green pastures for growth.
About the author: This article was authored by Michelle Khoo, leader of the Deloitte Center for The Edge Southeast Asia. With over a decade of experience in advising business and government leaders on long-term strategies, Khoo is passionate about shaping a more sustainable, fairer, and inclusive future in both physical and digital realms. Her work revolves around artificial intelligence, sustainability, metaverse, disruption, and innovation.

Pioneering innovation: Turning challenges into competitive advantages

Singapore

Malaysia

Thailand

Vietnam

Philippines

… 10,000 (USD 1,400) for the first, second, and third versions, respectively, with more price hikes anticipated.
Li Auto has also bolstered its brand with intelligent driving, offering E2E capabilities across all Max models. As a result, user satisfaction has risen significantly.
In Q2, Li Auto reported that 70% of its vehicles priced above RMB 300,000 (USD 42,000) are equipped with AD Max, its advanced autonomous system, priced at RMB 20,000 (USD 1,400) more than the Pro model—reflecting a strong demand for intelligent driving features.
<h3>Buying GPUs and building data centers</h3>
In addition to car sales for data collection, automakers are rapidly building their GPU capabilities. Tesla, according to its Q3 earnings report, currently holds AI capacity equivalent to 67,500 Nvidia H100 chips—totaling about 67.5 exaflops. Tesla aims to increase this capacity to 88.5 exaflops with the addition of another 21,000 H100 chips by the end of October.
Beyond substantial Nvidia GPU acquisitions, Tesla is also advancing its in-house Dojo supercomputer, targeting a capacity of 100 exaflops, bolstered by 8,000 H100 GPUs expected by year-end.
This intensifying GPU competition is sparking reactions among Chinese automakers. Due to US export restrictions, Nvidia’s H100 is more challenging to acquire in China, pushing companies there to rely on the A800, a more affordable but less powerful alternative. Currently, Huawei leads in computing power within China, with 7.5 exaflops derived from both Nvidia GPUs and its own Ascend chips. While Ascend’s toolchain has limitations, Huawei’s proprietary supply secures steady progress in cloud processing.
Following Huawei, Li Auto holds 5.39 exaflops of capacity, achieved with approximately 10,000 Nvidia GPUs. According to industry estimates, attaining this capacity with A800 chips would require around 16,800 units. Cloud GPUs have become more accessible since last year, with A800 servers priced at around RMB 950,000 per eight-card module. Nevertheless, achieving such computational strength remains a significant financial undertaking for Chinese automakers.
Li Auto aims to reach 8 exaflops by the end of the year, recently partnering with Volcano Engine to establish a joint data center, with further expansion under consideration. Meanwhile, Xpeng has reached 2.51 exaflops—around 7,800 A800 GPUs—and targets 10 exaflops by 2025. Nio currently trails with 1.4 exaflops, or about 4,300 A800 cards.
For context, China’s national compute capacity was 246 exaflops as of June 2024 (FP32 basis), equivalent to roughly 492 exaflops at FP16 precision. Huawei, Li Auto, Xpeng, and Nio collectively contribute around 3.5% of this national total.
Amid this race, smaller companies are making strides through partnerships: IM Motors collaborates with Momenta, and Great Wall Motors has joined forces with DeepRoute.ai to accelerate market entry. The global AI model landscape has reached unprecedented scales, with some Chinese companies investing over USD 50 million just to enter the field. Leading Chinese AI firms are now building trillion-parameter models, fueled by extensive computing resources, with companies like Kimi and Stepfun assembling massive GPU clusters in collaboration with cloud providers.
A parallel shift is emerging in the automotive industry. Automakers are evolving from conventional car sellers into AI-driven tech companies, leveraging massive data and computing resources to push toward fully autonomous vehicles and embodied intelligence. In this intensely competitive, low-margin field, the pursuit of greater computing power is relentless, with the ongoing price war signaling that AI differentiation could be the ultimate key. For automakers, the high-stakes game of compute has only just begun.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3013286807217667">article</a> was written by Li Anqi for 36Kr.

China’s automakers pour billions into AI compute race, chasing Tesla’s lead

Xpeng Motors

Tesla

Artificial Intelligence

Autonomous Vehicles

Deep Tech

Mobility

… https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte-225x300.jpg 225w, https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte.jpg 1080w" sizes="(max-width: 360px) 100vw, 360px" /><figcaption id="caption-attachment-147157" class="wp-caption-text">Luckin Coffee’s “sauce-flavored latte” was crafted in collaboration with Kweichow Moutai. The beverage is infused with “moutai,” a type of liquor named after the town where it originated. Image source: Luckin Coffee.</figcaption></figure>
Li Yingbo, COO of Cotti, said in an interview that Cotti plans to adjust products according to local tastes, from coffee bean roast levels to sweetness. However, 36Kr noted that Cotti’s Middle Eastern menu largely mirrors its Chinese offerings, with milk-based coffees as the mainstay.
So far, Cotti’s adaptations for international markets have involved only minor changes. Meeting the Middle East’s specific demands may require more substantial R&amp;D investment and a broader selection of specialty offerings, which would add strain to its overseas supply chain.
Relying on low prices and broad market penetration alone may prove more challenging than anticipated for Chinese coffee brands seeking to establish a presence in the coffee-rich Middle East.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2997339623206787">article</a> was written by Ye Danxuan for 36Kr.

Chinese coffee brands set sights on Middle East as next big market

Luckin Coffee

Cotti Coffee

China Tech

MENA

… aria-level="1">Robopoet, a companion robotics company, completed an angel funding round in mid-2024, raising millions of RMB from undisclosed industry investors. The funding will advance the development of its companion robots, including its first product, with expectations for market release next year. —<a href="https://36kr.com/p/3015805862127111">36Kr</a></li>
<li aria-level="1">Zhongke Bosheng, an advanced thermoelectric semiconductor company, has closed a pre-Series A funding round, raising tens of millions of RMB. Casstar led the round, joined by a Jiangyin state-backed angel fund, Sukong Venture Capital, and Oriza Seed. The funds will expand production, boost R&amp;D, and strengthen its team. —<a href="https://36kr.com/p/3017273903359495">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>81Ravens, Honor, Eikto Battery, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://81ravens.com/">81Ravens</a>, a Singapore-based game development company known for its arena shooter game <a href="https://paravox.games/">Paravox</a>, raised USD 4.5 million in a seed funding round co-led by Digital Hearts Holdings and Gree Ventures.</li>
<li aria-level="1">Honor, once a subsidiary of Huawei Technologies, reportedly attracted new investors, including China Telecom, CICC Capital, and Cornerstone.</li>
<li aria-level="1"><a href="https://www.eikto-battery.com/">Eikto Battery</a>, a developer of industrial lithium-ion batteries from Anhui, secured RMB 400 million (USD 56 million) in a funding round led by state capital investors including Hefei Industry Investment and Kaisheng Group. A RMB 3 billion (USD 420 million) industry fund backed by China Galaxy Investment (CGI) also participated.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.

Deals in brief: Insider raises USD 500 million, UOB FinLab funds ASEAN green tech pilots, six China deals, and more

… design team of five. “It was more intense than at other startups I’ve been with,” the employee added.
This feedback-driven approach has made Talkie and its domestic counterpart, Xingye, MiniMax’s most resourced projects, with roughly 300 employees working on them compared to fewer than 100 on Hailuo AI. Talkie’s rapid and user-centered design keeps it ahead of imitators.
Each Talkie employee can point to details that make the app distinctive—from the elegant black and gold color scheme to the thoughtfully designed star icons embedded throughout the app, character designs, and payment buttons. Talkie’s chat feature even formats user responses to include parentheses, mirroring users’ habits of adding side comments.
<figure id="attachment_150614" aria-describedby="caption-attachment-150614" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-150614" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-1024x496.jpeg" alt="Screenshot displaying Talkie’s chat interface." width="1024" height="496" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-1024x496.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-300x145.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-768x372.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface.jpeg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-150614" class="wp-caption-text">Screenshot displaying Talkie’s chat interface. Image source: 36Kr.</figcaption></figure>
By staying attuned to user preferences, Talkie has remained challenging to copy. “Most companies could recreate Talkie’s design, but they wouldn’t achieve the same results,” the product manager said. “Talkie works because it serves its specific audience, unlike other consumer AI apps that try to do everything but can’t retain users.”
<h3>A success hard to replicate</h3>
Despite Talkie’s triumphs, MiniMax’s reliance on the app as a cash cow reveals potential vulnerabilities. The first warning came in March 2023, when MiniMax encountered a significant hurdle: Glow, Talkie’s predecessor, was removed from app stores just six months after its release.
While no official reason was given, and AI licensing laws were still pending, many industry insiders and MiniMax staff believe Glow’s removal was linked to its loosely moderated user interactions. “Eighty percent of Glow users created borderline or explicit adult content with their AI characters,” a MiniMax product manager told 36Kr. This willingness to cater to user demand gave MiniMax’s consumer products an early boost but underscored the regulatory risks of similar models in the domestic market.
Adult content production is currently the most profitable commercial model for AI, according to one investor. Several AI products with international traction, like Replika and Civit AI, have also taken a relaxed approach to adult content. To maintain momentum, Talkie has shifted its focus to overseas markets with less stringent regulations. However, its domestic version, Xingye, hasn’t achieved the same level of success.
Launched in September 2023, Xingye mirrors Talkie in gameplay but with an upgraded interface. A former Talkie employee explained, “Talkie’s original design was kept simple for Western markets, where devices often lag behind Chinese models in performance. Adding extra visuals could create lag.” Despite these upgrades, Xingye hasn’t met MiniMax’s domestic expectations.
“To meet local licensing requirements, Xingye had to install a strict firewall for sensitive language,” the product manager said. “But this impacts user experience—users can’t vent or swear if they’re frustrated—the AI simply responds with ‘stay positive.’”
Data shows that female users are generally more inclined to pay for companion-style products. A former Talkie employee noted that Character.AI’s user base is 20% female and 80% male, whereas Talkie’s split is closer to 40:60. Xingye’s gender ratio, meanwhile, is 60% female to 40% male, highlighting different monetization challenges.
Even abroad, Talkie’s growth isn’t without risks. Anxiety about market risk has permeated MiniMax’s team since early 2024. “Talkie is MiniMax’s heartbeat,” one Hailuo AI employee said. “It’s risky when you depend so much on one revenue stream.” Concerns over a potential US ban prompted MiniMax’s leadership to keep Talkie’s US presence low-profile.
These concerns are well-founded. On October 17, <a href="https://us-east-1.envoy.cirrus.bloomberg.com/opinion/articles/2024-10-16/can-china-s-ai-dragons-make-it-in-the-us?srnd=opinion-technology-and-ideas">Bloomberg</a> reported that Chinese AI apps in the US might face scrutiny similar to TikTok due to escalating geopolitical tensions. In response, MiniMax has allocated resources to tightening Talkie’s content controls.
MiniMax employees confirm that Talkie’s responses to suggestive topics have become notably restrained due to new engineering measures. According to a product manager, users who seek out AI apps for such purposes typically don’t stay long, making them less ideal for retention.
Meanwhile, MiniMax has begun exploring ways to build the next Talkie. A Hailuo AI employee told 36Kr that MiniMax briefly experimented with adding companion features to Hailuo AI, but the results were underwhelming. Sources revealed that Hailuo AI’s ambiguous identity as both a productivity and companion tool led to team departures, and competitors like Kimi and Doubao have since entered the market, leaving Hailuo AI with low user retention.
whereRelatedArticle
MiniMax is also testing new growth avenues by expanding Talkie’s reach beyond the US and European markets.
One source said that, during this year’s spring, MiniMax CEO Yan Junjie mentioned a pivot to Southeast Asia in company meetings, stressing that Talkie would need local adaptations.
“English-speaking markets are saturated, but Asia’s niche language markets hold untapped potential,” the source said, adding that Southeast Asia also offers lower marketing costs and strong user engagement for nurturing games.
As MiniMax continues to expand Talkie’s reach, maintaining its growth trajectory will be key to securing a position in the highly competitive AI space.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3012129118414342">article</a> was written by Zhou Xinyu for 36Kr.

Talkie’s global traction puts MiniMax in AI’s top tier, but risks loom

East Asia

MiniMax

… message the policy sends.
A woman living in Seoul, who asked not to be named, ordered a jumpsuit from a Chinese e-commerce platform in late August, but found the material didn't meet her expectations. She contacted the platform for a possible return and was told she could keep the item and still receive a full refund.
"The refund-only policy is a little disturbing to me; it feels like they are mass producing cheap items without caring about shoppers' preferences, focusing more on quantity than quality," she said, adding that because the jumpsuit's material felt too cheap to give away, she ended up throwing it out.
"While it's convenient for me as a shopper since I don't have to repack and return the item, I do feel guilty about the environmental impact. I would feel better if the item could be resold through the platform," she said.
Back in China, there is also debate over the policy. Eleven posted an image on social media of the letter she received, sparking heated discussion over the pros and cons of returnless refunds.
"It's really hard to reach a consensus," she told Nikkei. "As a consumer, I was very upset to see the warning. If there are no quality issues, I wouldn't return the goods. But in the current environment, I also understand the sellers' frustration."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/China-s-e-commerce-industry-pushes-back-on-no-return-refunds" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

China's e-commerce industry pushes back on "no-return" refunds

JD.com

Taobao

Tmall

Temu

E-commerce

Consumer Economy

Li Auto, a leading Chinese electric vehicle maker, is stepping up its overseas strategy, having just established a dedicated division for international markets. This new division is helmed by Wang Jin, who reports directly to senior vice president Zou Liangjun. Wang, who previously managed Huawei’s sales in Chile, joined Li Auto over a year ago and brings crucial experience to the role.
For now, Li Auto’s overseas team is small, with limited activity. But the company is focusing its initial efforts on the Middle East and Central Asia, especially the UAE and Saudi Arabia. Earlier this year, Zou announced a shift to a direct sales model in these regions, with plans to create a dedicated after-sales network. The company expects to launch deliveries in the fourth quarter, with flagship models, the L7 and L9, leading the way.
Until recently, Li Auto’s international sales relied on a parallel export model—an approach that, while practical, marks a transitional phase. With the recent formation of a direct overseas division, Li Auto is signaling a deeper commitment to international growth.
However, the company has temporarily shelved its plan to open its own overseas stores. Sources close to the matter say Li Auto hesitated, fearing that such a move might alienate local partners and potentially drive them toward competitors.
As China’s automotive market grows increasingly competitive, international expansion is rapidly becoming a must for leading Chinese automakers. For Li Auto, the initial groundwork in the Middle East and Central Asia through parallel exports has built brand awareness, giving it an advantage as it begins expanding into these markets.
Now, Li Auto is experimenting with a more adaptable approach, recruiting local dealers to manage sales in regions where demand is already strong.
“Direct sales networks come with many challenges. Li Auto is now working with dealers in markets where there’s proven demand,” said a source familiar with the company’s plans.
The company is also customizing its models for international markets. “At the beginning of the year, we completed a review of the modifications needed for the Middle East,” an insider said. Besides the Middle East, Latin America is emerging as a target market for Li Auto. With Wang’s background in Latin American markets, this region could provide a promising new growth channel.
Li Auto declined to respond to these recent developments when 36Kr reached out for comment.
Li Auto’s journey toward international expansion has seen twists and turns. In 2020, CEO Li Xiang said that overseas markets were a necessary next step for the company. But by July 2022, he signaled a more reserved approach, announcing that Li Auto would delay foreign market plans until at least 2025. During a meeting held in October the same year, an even more conservative outlook emerged, with the company suggesting it might wait until 2028 to enter global markets in earnest, relying on parallel exports for the time being.
This year, however, Li Auto’s stance has shifted once again.
The adjustment reflects Li Auto’s evolving growth strategy. Following challenges in fully electric vehicle sales, Li Auto revised its 2023 sales target from 800,000 to around 500,000 units. Sources say the company now anticipates a longer timeline to reach its next million-unit milestone, with a slower growth trajectory.
Intense competition within China is also a factor. Aito, backed by Huawei, is matching Li Auto in sales. Meanwhile, brands like Xiaomi, Leapmotor, and Xpeng Motors are expanding rapidly, gaining traction in the domestic market.
whereRelatedArticle
For Li Auto, overseas expansion could present a new growth path amid the tight domestic competition.
Since the start of 2023, numerous Chinese automakers have accelerated their overseas expansion. Nio, Xpeng, Leapmotor, BYD, Chery, SAIC MG, Changan, Geely, and Voyah have all launched models in Europe.
However, the European Union’s tariffs on Chinese vehicles have made European factories a costly requirement for Chinese companies. BYD, for instance, plans to establish its first European factory in Szeged, Hungary. Chery will repurpose a former Nissan plant, and SAIC, Geely, and others are exploring European manufacturing options. Leapmotor, meanwhile, has chosen to leverage Stellantis’ European sales network.
Li Auto remains cautious about entering the European market. “Europe and the US are red lines for our export operations,” an insider said.
For now, Li Auto prefers expanding into markets validated by parallel exports. In 2023, many of its vehicles reached the Middle East, Central Asia, and Russia. In Russia, a Li L9, priced at RMB 450,000 (USD 63,000) in China, reportedly sold for as much as RMB 900,000 (USD 126,000) after parallel export.
Earlier this year, CEO Li posted on social media that monthly parallel export volumes had reached around 3,000 units across Central Asia and the Middle East. If this pace continues, Li Auto’s annual exports could exceed 30,000 units, providing a solid growth foundation. By contrast, Chinese startups exporting to Europe report annual sales of around 3,000 units.
However, parallel exports come with risks. This year, Russia introduced regulations requiring taxes on vehicles shipped through Central Asia, which could cut into profit margins.
Li Auto is also exploring new Latin American markets, including Mexico, Brazil, and Chile, where demand shows promise. According to data from the China Association of Automobile Manufacturers, Russia, Mexico, and Brazil were the top three destinations for Chinese vehicle exports in the first half of 2023.
These new markets bring potential for growth but will also challenge Li Auto to evolve and strengthen its capabilities.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3014837753144836">article</a> was written by Li Anqi for 36Kr.

Li Auto expands overseas with dealer partnerships in Middle East, Central Asia

Electric Vehicles

Central Asia