The CEO of Li Auto stated that Li Auto mistakenly considered the commercial validation period as a period of rapid growth for Li Auto, and this strategic mistake was the main reason for the model’s problems.
Li Xiang, founder, chairman and CEO of Li Auto (NASDAQ: LI), reflected on the company’s current situation after its long-awaited Li Auto minivan (multi-purpose vehicle) failed to live up to expectations.
In an internal email today, Lee outlined problems with the first battery electric vehicle (BEV) model launched on March 1 and how to fix them.
Internal emails seen by CnEVPost show that Li Auto mistook Li Auto’s commercial review period for a period of rapid growth for Li Auto, and this strategic mistake was essentially what caused the model’s problems.
The future high-voltage all-electric Li Super and Li Auto models will have to go through the same vetting process as the Li One and other extended range electric vehicles (EREVs), and will not have the same powerful power as they do now. Lee said the L series was released shortly after its launch.
He said Li Auto will then patiently complete the commercial review period of Li Mega, focusing on core user groups and cities with high consumption of high-end electric vehicles.
The L Li Auto series includes three models – Li Li L7, Li Li L8 and Li Li L9. They are all range-extended electric vehicles and are essentially plug-in hybrid vehicles. Deliveries of the first Li Mega electric car began on March 11.
Half a month after launch, Li Auto has reportedly received less than 4,000 orders, and Li Auto is considering lowering its sales target.
Main reason: We misused Li Mega from Stage 0 to Stage 1 (Commercial Validation Stage) as Stage 1 to Stage 10 (Rapid Development Stage).
Li Mega and high-voltage pure electric models must go through the 0 to 1 stage, similar to the Li One and other extended range electric vehicles (EREVs), and cannot realize the commercial potential of 1 to 10. Li Auto’s L Series was available immediately after launch .
The chaos in Li Zhaojia’s rhythm also caused the sales team to greatly reduce time and energy in serving L series customers, and the main model Lili L8 did not even have a place in the store.
Solution: We will patiently operate Li Mega in a 0 to 1 rhythm, focusing on key user groups and cities with high capacity to consume high-end clean electricity.
We will move away from an all-out sales strategy and instead focus on large shopping malls in major cities for product previews and test drives, and will accelerate the construction of supercharging stations in these cities.
Once stage 0 to 1 is effectively completed, we will promote it to more cities and a larger group of users.
The root cause: We care too much about sales and top-down competition, allowing desire to trump value, resulting in a decline in our original maximum customer value and operational efficiency.
Solution: Lower sales expectations and desires and return to healthy growth. Focus on users, not competition, and value, not wants. Get back to what we do best, which is delivering value to users, and get back to what we’re best at, which is driving operational efficiency.
The March 2024 release is an expanded version of the 2022 release. We need to be realistic and learn from our mistakes.
We are confident that, together, we will focus on user value, focus on operational efficiency, patiently control the pace, solve problems through implementation, and serve users in a long-term and healthy way.
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Post time: Jul-23-2024
