What kind of anxiety of Li Xiang is exposed by the official announcement that the "Li Auto i7" does not exist?
Li Xiang, the CEO of Li Auto, officially announced on a social platform: "There is no 'Li Auto i7' model. Please don't wait for it."
Screenshot: Weibo @Li Xiang
The "Li Auto i7" that some netizens were looking forward to was actually inspired by the Li Auto L series. They hoped that the official would launch a model positioned between the Li Auto i6 and the Li Auto i8.
The i series is extremely streamlined, while the Li Auto L series seems rather complicated. The difference in their product strategies is so great that it's as if they were developed by two different companies.
Logically speaking, as a new - force brand that has already achieved profitability, Li Auto is fully capable of creating large - scale pure - electric SUVs such as the "Li Auto i7" and "Li Auto i9". However, at the second - quarter earnings conference on August 28th, Li Xiang clearly stated: "Next year's work will focus on enhancing the overall vehicle product strength, expanding the overseas market, and promoting the construction of artificial intelligence informatization. Regarding the issue of 'increasing the frequency of product launches', Li Xiang advocates 'accelerating the update and iteration of the technology platform and products' rather than adopting a 'wide - net - casting' product layout strategy."
Image source: Li Auto official
It implies that after the launch of the Li Auto i6 on September 26th, Li Auto is unlikely to launch a corresponding pure - electric SUV in the next period.
In the view of Dianchetong, compared with the strategy of 'having more children to fight', a streamlined product strategy is more suitable for the current Li Auto i series.
Actually launching the 'Li Auto i7' might only dilute resources
Referring to the size data of the Li Auto i6 and Li Auto i8, it seems really difficult to insert a "Li Auto i7" between these two models.
Actually, the reason why some users thought the "Li Auto i7" would be launched is mainly due to the successful model of the Li Auto L7. Despite the small differences in body size between the Li Auto L7 and the Li Auto L6 and L8, the Li Auto L7 accurately found its own body - size positioning. With higher configurations than the Li Auto L6, it found its place in the 300,000 - level new - energy SUV market.
Chart made by: Dianchetong
It was actually well within Dianchetong's expectation that Li Auto would not launch the "Li Auto i7".
The Li Auto L series adopts a "wide - net - casting" product strategy. The core logic is to cover a wider audience as much as possible by deploying models with different sizes and configurations, and ultimately achieve the goal of expanding market share.
Although this strategy will divert the market share of the two high - end models, the Li Auto L8 and L9, to some extent, the sales growth of the Li Auto L6 and L7 still provides the core driving force for the stable development of the entire L series. After all, the L series is the sales foundation of Li Auto, and the "wide - net - casting" strategy is the key path to maximize its interests.
However, compared with the mature layout in the range - extender field, Li Auto started significantly later in the pure - electric market: The first pure - electric vehicle, the Li Auto MEGA, was not launched until 2024. Affected by factors such as the imperfect charging system at that time and the lack of obvious differences in product positioning from the Li Auto L9, the Li Auto MEGA did not bring the expected brand benefits to Li Auto, and the pure - electric field has thus become a "weak point" that Li Auto urgently needs to break through.
To make up for this weakness, Li Auto spent more than a year strengthening the construction of the charging system, hoping to pave the way for the second pure - electric vehicle, the Li Auto i8. However, after the launch of the i8, it was involved in public - opinion storms due to issues such as the "collision with an 8 - ton truck" controversy and the "adjustment of SKUs upon launch", which had a negative impact on the brand's popularity.
Image source: Li Auto official
Sales data shows that the Li Auto i8 delivered 2,212 units in August. Considering that this new car only started deliveries on August 20th, achieving this result in about 10 days is quite remarkable. However, to reach the goal of delivering 8,000 - 10,000 units by the end of September, it needs to maintain a stable weekly sales volume of 2,000 units, which is not an easy task.
Li Xiang hopes that the Li Auto i6 will become the "sales champion in the mid - to - large - sized five - seat pure - electric SUV market", aiming to make it the main sales force of Li Auto's pure - electric models. Judging from the sales data of the car market in August, there aren't many best - selling models in the mid - to - large - sized pure - electric SUV market. The monthly sales of models such as the IM LS6, XPENG G9, and Zhijie R7 are all less than 4,000 units, while only the Xiaomi YU7 leads the way with sales of 16,548 units. Obviously, the Xiaomi YU7 will be the core competitor that the Li Auto i6 must overcome on its way to becoming the sales champion.
Image source: Xiaomi Auto official
Previously, Li Xiang set a goal of "monthly pure - electric sales of 20,000 units by the end of the year". To achieve this goal smoothly, the ideal path is: the Li Auto i6 contributes 17,000 units (it needs to top the sales list in the mid - to - large - sized pure - electric SUV market), and the Li Auto i8 and MEGA jointly undertake the remaining goal of 3,000 units.
It's worth noting that the Li Auto L series has already gained high popularity in the domestic market. The car company doesn't need high - cost marketing investment, and the sales team doesn't need to spend too much energy to achieve stable sales. However, the pure - electric field is still a "new battlefield" for Li Auto and has not yet established a firm foothold. Therefore, it must concentrate resources on the core model, the Li Auto i6. If it rashly launches the "Li Auto i7" at this time, it will only distract the sales team, weaken the promotion efforts of the Li Auto i6 and i8, and may ultimately fall into a passive situation of "not being able to handle both well".
This is the key consideration for Li Auto not to launch the "Li Auto i7".
As the L series faces more difficulties, can the i series save Li Auto?
Currently, Li Auto's publicity resources are mainly tilted towards the two pure - electric SUVs, the Li Auto i8 and i6. On the surface, this seems to be a regular marketing move during the new - car launch cycle. However, upon deeper analysis, it might be a helpless move under the pressure on the sales foundation.
The sales of Li Auto's pure - electric vehicles have increased, but the L series, which is the sales foundation, has "weakened". The latest sales data shows that Li Auto only delivered 28,529 vehicles in August this year, a significant year - on - year decline of 40.7% and a month - on - month decline of 7.16%. Only the Li Auto L6 managed to exceed 10,000 units in delivery volume that month. Such a result is one of the most dismal monthly sales reports in Li Auto's history.
Screenshot: Li Auto official
While facing sales pressure, the financial data also sends a warning signal. Li Auto's second - quarter earnings report shows that although the delivery volume increased slightly by 2.3% year - on - year, the revenue decreased by 4.5% year - on - year. Behind this contradiction of "increasing volume but decreasing profit", there are two core reasons:
The competitive environment has intensified, and competitors' high - end models have continuously diverted users. To stabilize market share, Li Auto has to attract consumers to choose the L6 through means such as financial discounts and sales incentives, which directly leads to a decline in the brand's average transaction price.
Li Auto is in a critical and painful period of transformation from range - extender vehicles to pure - electric vehicles. The pure - electric sector has not yet formed a scale effect and has not contributed obvious incremental revenue to the brand.
Looking back, Li Auto achieved explosive sales growth from 2021 to 2024 through the range - extender technology route and once had an absolute advantage in the high - end family SUV market. However, as brands such as Wenjie, Leapmotor, Deepal, and Avatr have all entered the hybrid SUV field, the market competition pattern has been completely broken, and Li Auto's era of "dominance" has ended. Now, it is facing unprecedented competitive pressure.
Li Auto's increased investment in the pure - electric field is not a blind follow - up but an inevitable choice based on market trends.
According to the data released by the Passenger Car Association, the sales of range - extender vehicles decreased by 9.5% year - on - year in the first eight months of this year, and market demand continued to cool down. From the internal structure of the new - force camp, the proportion of pure - electric and range - extender models has changed from 56%:10.2% last year to 64%:7.7%, indicating an increasingly obvious trend towards pure - electrification.
Facing the shrinking range - extender market, Li Auto can only place more hopes for future development on its three pure - electric models. However, the new - energy vehicle market is never short of blockbuster new cars, and the competition has already entered a white - hot stage.
Li Auto's bet on the pure - electric field is undoubtedly a "high - stakes gamble" for the brand's future.
Image source: Shot by Dianchetong
The future performance of the Li Auto i8 remains to be seen. Regarding the upcoming Li Auto i6, there were rumors in the market such as "the selling price is lower than 230,000 yuan" and "the expected monthly sales volume is 25,000 units", which the official has clearly denied. At the second - quarter earnings conference call, Li Auto's management also revealed the operation strategy for the i6:
On the one hand, it will proactively prepare for "public - opinion defense" and actively respond to market voices. On the other hand, it will streamline the number of SKUs, stop pursuing complex configuration combinations, and instead focus on creating the ultimate core configurations.
Obviously, this is closely related to the experience of the Li Auto i8's launch. According to the latest information released by the Ministry of Industry and Information Technology, the Li Auto i6 will only be available in rear - wheel - drive and four - wheel - drive versions, and it's unlikely to have more differentiated configuration versions.
In terms of price, after the official denial of the rumor that "the starting price is lower than 230,000 yuan", the market positioning of the Li Auto i6 has become clear. Its price range will directly overlap with popular models such as the Tesla Model Y and Xiaomi YU7, which means that from the very beginning of its launch, the new car must enter a highly competitive niche market.
Competing for users between Tesla's brand power and Xiaomi's ecological advantages is as difficult as "snatching food from a tiger's mouth".
For the Li Auto i6, if it wants to break through and become a hit, the existing product framework is far from enough. It must offer real "surprises" in product experience, core configurations, or user value to attract consumers and gain a foothold in the fierce competition.
Li Auto has sufficient funds and still has room for trial and error for now
The launch of multiple blockbuster products has indeed dealt a blow to the Li Auto L series, but sufficient capital reserves have built a solid "moat" for it.
As of the end of the second quarter this year, Li Auto's cash reserve has reached as high as 106.9 billion yuan. This abundant capital not only provides strong support for its continuous R & D investment, market expansion, and the expansion of the energy - replenishment system but also gives the brand the confidence to explore overseas markets.
The official has clearly announced that this year is the "year of going global", and it will focus on the Middle East, Central Asia, and European markets. "Capital" is undoubtedly the advantage that Li Auto doesn't need to worry about at present.
Based on this financial confidence, it's not impossible for Li Auto to set a more attractive "surprise price" for the upcoming Li Auto i6 to quickly establish a firm foothold in the highly competitive pure - electric market.
However, compared with the "wild growth" of the previous L series through the range - extender route, Li Auto is obviously more cautious in the pure - electric field at present. After all, the competition pattern, technological barriers, and user needs in the pure - electric track are different from those in the