Caixin Weekly | Li Auto Breaks Through (AI Translation)
Listen to the full version
文｜财新周刊 安丽敏
By An Limin, Caixin Weekly
短短几天之内，理想汽车（NASDAQ：LI）创始人兼CEO李想经历了从巅峰到低谷的剧烈转换。2024年2月26日，理想汽车交出一份漂亮的业绩报告：2023年，公司共交付37.6万辆，营收达到1238.5亿元，全年扭亏为盈，净利润达118.1亿元。这意味着它在造车新势力中率先实现年度盈利。
Within just a few days, Li Xiang, founder and CEO of Li Auto (NASDAQ: LI), experienced a dramatic shift from the peak to the trough. On February 26, 2024, Li Auto delivered an impressive performance report: in 2023, the company delivered a total of 376,000 vehicles, with revenue reaching RMB 123.85 billion. The company turned around its fortunes over the year, achieving a net profit of RMB 11.81 billion. This means it was the first among new electric vehicle makers to achieve annual profitability.
3月1日，在春季发布会上，理想汽车推出首款纯电动旗舰车型MEGA和三个增程车型的2024款。李想难掩兴奋，在发布会之前就多次表态，MEGA将成为爆款，从奔驰、宝马和奥迪手中抢走市场份额。
On March 1, at its spring launch event, Li Auto unveiled its first all-electric flagship model, the MEGA, along with the 2024 versions of three range-extended models. Li Xiang could hardly contain his excitement, having stated multiple times before the event that the MEGA would become a hit product and seize market share from Mercedes-Benz, BMW, and Audi.
MEGA是一款售价超50万元的多用途车型（MPV），外形特别，理想汽车自称是“公路高铁”，早在2023年11月就已在广州车展亮相。不料MEGA这次正式发布后，其产品图片被“恶意处理”后在网络上广泛流传。
MEGA, a multi-purpose vehicle (MPV) priced over 500,000 yuan, boasts a distinctive design. Ideal Automobile brands it as the "high-speed rail of the roads," having made its debut at the Guangzhou Auto Show as early as November 2023. However, following its official launch, images of MEGA were maliciously altered and widely circulated online.
Digest Hub
Back
- Li Auto, led by CEO Li Xiang, reported a successful 2023 with 376,000 vehicles delivered and a net profit of RMB 11.81 billion, marking the first annual profitability among new electric vehicle makers. The company unveiled its all-electric flagship model, the MEGA, aiming to compete with luxury brands but faced challenges with image manipulation and rumored order cancellations.
- Huawei's automotive brand AITO has emerged as a formidable competitor to Li Auto, with its M7 model surpassing 100,000 units in deliveries within 170 days and outselling Li Auto in the early months of 2024. Huawei's aggressive strategy under HarmonyOS Smart Mobility poses a significant threat to other electric vehicle makers.
- Li Auto is responding to competition by introducing price reductions and new models while emphasizing investments in intelligent driving and smart cabins. The company aims for high sales targets in 2024 amidst intense competition from established brands like Tesla and BYD, as well as technology companies entering the automotive sector like Xiaomi.
Li Auto, led by founder and CEO Li Xiang, showcased remarkable growth in 2023, delivering 376,000 vehicles and achieving a net profit of RMB 11.81 billion, marking the company's transition to profitability among new electric vehicle makers [para. 1]. The introduction of its all-electric flagship model, the MEGA, alongside updated versions of its range-extended models in early March 2024, signaled Li Auto's ambition to compete with luxury brands and expand its product lineup [para. 2]. However, the launch faced challenges as images of the MEGA were altered online, leading to rumors of order cancellations and prompting Li Xiang to vow retaliation against what he perceived as an organized attack [para. 3].
In response to these challenges, Li Auto announced promotional measures and price adjustments for its extended-range vehicles to bolster sales and maintain growth momentum. The company aims to build a significant number of supercharging piles by the end of 2024 and has set an ambitious sales target of 800,000 vehicles for the year [para. 4][para. 5]. Despite these efforts, Huawei's AITO brand emerged as a formidable competitor, outperforming Li Auto in early 2024 sales and setting records with its M7 model. Huawei's collaboration with various automotive partners under its HarmonyOS Smart Mobility model poses a significant threat to traditional electric vehicle makers due to its focus on smart technology integration [para. 6][para. 7].
The competitive landscape is further complicated by the shift towards intelligent driving features and smart technology in vehicles. Huawei's success with the Wenjie series highlights the importance of innovation in capturing market share. Meanwhile, Li Auto faces pressure not only from Huawei but also from other new energy vehicle manufacturers as it navigates a highly competitive market [para. 8][para. 9]. The launch difficulties experienced with MEGA underscored the challenges ahead for Li Auto in establishing itself in higher-priced market segments against established luxury brands [para. 10].
Li Xiang remains determined to overcome these obstacles through strategic pricing adjustments, promotional efforts, and an emphasis on extended-range hybrid technology as a competitive advantage. By focusing on family car buyers above 200,000 yuan and investing heavily in intelligent driving technologies from 2024 to 2026, Li Auto aims to differentiate itself from competitors while addressing consumer demands for advanced features [para. 11][para. 12].
As new forces like Xiaomi enter the automotive sector with high expectations from their fan base, competition intensifies further. The battle for market share among new energy vehicle manufacturers is expected to lead to increased consolidation within the industry. Companies that fail to adapt or capture sufficient market share face potential elimination from mainstream competition [para. 13][para. 14]. In this fiercely competitive environment, both Li Auto and Huawei must navigate carefully to avoid pitfalls while striving for innovation and customer satisfaction as they vie for leadership positions in China's evolving automotive landscape [para. 15].
- Li Auto
理想汽车 - Summay： Based on the article, here are some key points about Li Auto:- Li Auto, founded by Li Xiang, achieved annual profitability in 2023, making it the first among new electric vehicle makers to do so.- In 2023, Li Auto delivered 376,000 vehicles, generating revenue of 123.85 billion RMB and a net profit of 11.81 billion RMB.- The company unveiled its first all-electric flagship model, the MEGA, in March 2024, but its launch was met with mixed response and some negative publicity.- Li Auto's existing models, such as L7, L8, and L9, are range-extended hybrids, and the company is now pursuing a dual-track strategy with both pure electric and range-extended hybrid models.- The company faces intense competition from Huawei's AITO brand, which has been outselling Li Auto in recent months.- In response, Li Auto has taken measures such as price cuts, new model launches, and increased investment in intelligent driving and electric vehicle platforms.- Li Auto aims to maintain its position as a top 3 brand in the high-end new energy vehicle market, with a sales target of 800,000 vehicles for 2024.- The company acknowledges the need to continue innovating and improving to stay competitive in the rapidly evolving market.
- Huawei
华为 - Summay： Based on the article, here are some key points about Huawei:- Huawei's automotive business unit, HarmonyOS Smart Mobility, collaborates with car manufacturers like Chery and BAIC to produce cars under the AITO brand.- AITO's M7 and M9 models, utilizing range-extended hybrid technology, have achieved impressive sales, posing a threat to Li Auto's market position.- Huawei plans to launch new electric vehicle brands, including the Zhijie S7 with Chery and Ao Jie with JAC Motors, to target the high-end market.- Huawei's aggressive expansion into the automotive sector is seen as a significant challenge for electric vehicle makers like Li Auto, with its technological strength and brand influence.- Huawei's automotive business model involves leading in design, development, and sales, while car manufacturers serve as contract manufacturers, which presents coordination challenges.- Despite its strong momentum, Huawei's automotive business is still in its early stages and has not yet achieved profitability, unlike Li Auto.In summary, Huawei's entry into the automotive sector, leveraging its technology and brand strength, poses a significant competitive challenge to Li Auto and other electric vehicle makers. However, Huawei's automotive business is still in its early stages and has not yet achieved profitability.
- February 26, 2024：
- Li Auto delivered an impressive performance report: in 2023, the company delivered a total of 376,000 vehicles, with revenue reaching RMB 123.85 billion. The company turned around its fortunes over the year, achieving a net profit of RMB 11.81 billion.
- March 1, 2024：
- Li Auto unveiled its first all-electric flagship model, the MEGA, along with the 2024 versions of three range-extended models.
- March 11, 2024：
- Li Xiang posted on his WeChat Moments, claiming to be the target of an organized attack and vowing to retaliate against illegal and criminal actions.
- March 12, 2024：
- Li Auto made another move by effectively reducing the price of its 2024 models for the existing extended-range vehicles L7, L8, and L9 by RMB 5,000. At the same time, it introduced entry-level versions of the L7 and L8, further lowering their prices.
- March 3, 2024：
- Huawei's AITO announced that its M7 model had surpassed 100,000 units in cumulative deliveries within 170 days of its launch, "setting a new record for the delivery speed of domestic luxury SUVs."
- July 2022：
- Huawei launched the Aito M7. Like Li Auto, it chose to use range-extended hybrid technology. Aito claimed that orders for the M7 surpassed 60,000 within three days of its launch.
- August 2022：
- Li Auto's sales dropped to 4,571 units, a year-on-year decrease of over 50%.
- September 2023：
- Huawei launched the new M7 model with a starting price of only 249,800 yuan, which is 30,000 yuan cheaper than the older version.
- March 2024：
- Huawei continued its aggressive push, announcing further price reductions for the Aito M7, with consumers able to enjoy discounts and benefits worth up to tens of thousands of yuan.
- November 2023：
- Huawei launched a new brand called "Zhijie" in collaboration with Chery, introducing its first model, the all-electric sedan S7.
- March 1, 2024：
- Liu Jie, Vice President of Business at Li Auto, reflected on the development process of Huawei's automotive business and pointed out that Huawei has the ability to quickly review and reflect upon issues encountered, learn from them, and seek knowledge from the outside world.
- February 18, 2024：
- Li Xiang declared, "Learn product development from Apple, manufacturing from Toyota, business operations from Tesla, organizational structure from Huawei, and innovation from Microsoft."
- March 1, 2024：
- Li Xiang spent an entire hour introducing MEGA, highlighting features such as the use of Contemporary Amperex Technology Co., Limited (300750.SZ) super-fast charging batteries, which can add 500 kilometers of range with just 12 minutes of charging.
- March 12, 2024：
- McKinsey China released its "2024 Automotive Consumer Insights" report. The survey revealed that traditional luxury brands are facing challenges, yet Chinese automakers have not yet established sufficient brand loyalty.
- March 1, 2024：
- Li Auto released its 2024 L series models, with most of them offering "more for the same price."
- March 12, 2024：
- Li Auto adjusted the naming of the L series and introduced Air versions of the L7 and L8 models, reducing the entry-level price by 18,000 yuan.
- April 2023：
- Li Xiang once publicly predicted that by December 2025, new energy vehicles would account for 80% of new car sales, and five major brands of new energy vehicles would emerge victorious.
- March 1, 2024：
- Liu Jie explained the underlying logic behind Li Xiang's revised judgment. He pointed out that in 2024, the sales volume of new energy vehicles in the passenger car market above 200,000 yuan could potentially exceed 50%.
- March 12, 2024：
- Lei Jun announced the launch date for its first car model. Within a day, the number of people who registered at Xiaomi stores to view the car surged by 100,000.
- February 18, 2024：
- He Xiaopeng, CEO of XPeng Motors, stated that 2024 would mark the first year of "cutthroat competition" among Chinese automobile brands.
- February 28, 2024：
- Li Xiang shared an article on social media about how Japanese companies respond to crises, which stated: Toyota and Honda succeeded in crises not through any extraordinary tactics but by being more cautious in avoiding financial risks and producing better products.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新