The government has set a target to scrap around 90,000 old government vehicles by March 2025.

The ministry further explained that production levels in August and September are expected to compensate for the overproduction in July.

Analysts say, the investments required for Li Auto to build out electric vehicle infrastructure could weigh on the company’s profitability.

The company plans to share initial findings from this review when it releases its first-half results on July 26.