500,000 vehicles delivered! Behind the new milestone in LI, the strategic strength is consistent.

500,000 vehicles delivered! Behind the new milestone in LI, the strategic strength is consistent.

With the delivery of an ideal L7, LI has reached a new delivery milestone.

On September 27th, LI completed the delivery of the 500,000th product to the users in Beijing Delivery Center, which also marked that LI became the first and fastest new force car company in China.

It is understood that since LI officially delivered its first car in December 2019, it took only 46 months to deliver 500,000 products. Among them, the delivery of 100,000 vehicles took 22 months, 300,000 vehicles took 39 months, 400,000 vehicles took 42 months, and 500,000 vehicles took 46 months, constantly setting new delivery records.

Some people think that the consistent strategic strength is behind LI’s rapid and excellent market performance. "LI still insists on making products, applications, technologies and systems thorough in the field of smart electric vehicles." Li Xiang, chairman and CEO of LI, once said that he hopes to achieve the same level as Apple in ten years, which is the strategic strength and core of LI.

Delivered to a new high, forming a new pattern of luxury SUVs in China

In fact, since this year, LI has maintained a strong trend in the terminal market. Data show that from January to August this year, the cumulative delivery volume in LI has reached 208,165 vehicles, and the monthly delivery volume is increasing. In August, LI delivered nearly 35,000 new cars, a year-on-year increase of 663.8%, a record high.

In addition, from January to August this year, LI’s market share in the domestic new energy vehicle market of more than 300,000 yuan exceeded 30%, becoming the sales champion of luxury new energy vehicles. Among them, judging from the market sales volume with terminal transaction price of over 300,000 in August, LI also surpassed Audi with 33,885 vehicles, second only to Mercedes-Benz and BMW.

Specific to the SUV market segment, starting from the second quarter of this year, LI won the SUV sales champion with a price of more than 300,000 in China market for five consecutive months, creating a new pattern of luxury SUV sales in China.

It is understood that since the delivery, the ideal L7 has been ranked first in the sales of medium and large SUVs in China market for six consecutive months, and won the sales crown from January to August; Ideal L8 has been the champion of six medium and large SUVs, and ranks in the top two market segments with ideal L7. Ideal L9 has won the sales champion of large SUV in China for many times. Since the first car rolled off the assembly line in August 2022, the cumulative delivery has exceeded 100,000 vehicles.

It is worth noting that with the continuous delivery of products, LI’s word-of-mouth has a positive communication effect. According to "Research on Brand Health of New Energy Vehicles in Jielan Road in the First Half of 2023", LI ranks first in the brand net recommendation degree (NPS), with a net recommendation value of 86.5%, leading the brand of new energy vehicles.

In addition, from the sales data, we can also see that the power of the ideal L series products continues to be recognized by home users in China. At present, the weekly sales volume of LI is stable at more than 8,000 vehicles, with sales exceeding 9,000 vehicles in the 38th week (9.11~9.17) and the 39th week (9.18~9.24) this year. While staying at the top of the sales volume of new power brands in China, it also maintains the top three sales volume of new energy brands in China market.

According to the financial report in the second quarter of this year, LI is expected to deliver 100,000 to 103,000 vehicles in the third quarter of this year, with a year-on-year increase of 277.0%~288.3%. As of September 24th, LI has sold 29,200 vehicles this month. While continuing to lead the new forces, it also plans to deliver 40,000 vehicles in November.

maintain strategic focus

From the market perspective, LI focuses on the high-end family car market. Li Xiang revealed: "Our strategy should guarantee two things: winning in this field and ensuring that our resources are concentrated. For example, when we look at the whole market, we can’t get into the market of 100,000 yuan and 200,000 yuan, because when the technology changes, the cost of new technology is slightly higher, and we don’t have the ability to fight price wars with traditional technologies. "

It is understood that LI’s core mission is to change travel with science and technology, and its vision is to become a leader in the field of automobile travel. Since its establishment, LI has been practicing this mission, insisting on full-stack self-research, and keeping 10% of its revenue for technology research and development every quarter, and has achieved many phased results.

At this year’s Shanghai Auto Show, LI released the "dual-energy strategy", which made great efforts in both "intelligence" and "electric energy" and entered a new stage of development. Reflected in the results, LI has built the first NOA scheme of the city based on the large model, which does not rely on high-precision maps; Around 5C Kirin battery, 800V high-voltage platform and 5C super-charged pile, the pure electric solution is optimized globally.

In addition, behind the rapid development of LI, the continuous upgrading of its organization also plays an important role. Li Xiang said: "(Building a car) This is a marathon, but every 4 kilometers of nodes will be eliminated. It is necessary to have long-term strategic strength and the ability to face short-term competitive elimination. The biggest challenge is its own organizational ability. "

In December last year, with the increase of new products, LI officially announced that its organizational structure had been adjusted from a vertical organizational structure to a matrix organizational structure. On the basis of the original two horizontal entity departments "Strategy Department" and "Product Department", five new entity departments were added, including commerce department, supply department, process department, organization department and finance department, which supported the management mode of LI and upgraded from a vertical functional organization to a matrix organization.

In the eyes of insiders, LI’s strategic focus, technical accumulation and organizational structure upgrading and adjustment have helped it stand out in the knockout stage of the automobile industry. "Technology, products, delivery capabilities, etc. are indispensable. Enterprises cannot have shortcomings, and the next elimination and involution will accelerate." Li Xiang said.

At the same time, LI continues to enrich the vehicle matrix. It is reported that MEGA, the flagship ideal of home technology in LI, will be officially released in December this year and will be delivered in February next year. In addition, the ideal L6 will also be listed next year. According to the plan, LI plans to achieve the goal of becoming the top luxury car brand in China market in 2024, and achieve the annual sales of 1.6 million vehicles by 2025.



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