Product is king
Li Auto, a Chinese NEV maker, recently launched the OTA 6.0 update for the Li L series and Li MEGA vehicles, focusing on enhancing the driving experience in three main areas: intelligent driving, intelligent space, and intelligent electrification.
The update includes the introduction of AD Max’s HD map-free NOA (Navigate on Autopilot) for intelligent driving. In the realm of intelligent space, the smart voice assistant Li Xiang Tong Xue’s Q&A system has been expanded to include sports events and news updates. Additionally, improvements to Li Auto’s supercharging stations and third-party charging stations have been made to enhance the charging experience.
At the 2024 China Auto Chongqing Summit, Li Xiang, the CEO of Li Auto, introduced new breakthroughs in autonomous driving technology. Inspired by the book “Thinking, Fast and Slow,” Li Auto’s autonomous driving team divided autonomous driving into System 1 and System 2. System 1 utilizes end-to-end autonomous driving technology, while System 2 incorporates a Vision Language Model (VLM) for handling complex driving scenarios without HD maps.
Li Auto’s commitment to meeting consumer needs is evident in its product strategy. The company’s flagship SUV, the Li ONE, was designed with a focus on family travel requirements, offering seating for up to seven passengers and a range exceeding 1,000 kilometers. Despite initial skepticism about range extender technology, the Li ONE quickly became a market success, with sales reaching 100,000 vehicles in just over two years.
Li Auto’s growth strategy has been marked by strategic investments in R&D and production capacity. The company went public on the U.S. stock market in 2020 and later listed on the Hong Kong Stock Exchange in 2021. By acquiring Beijing Hyundai’s factory and launching new models like the Li L8, Li L9, and Li L7, Li Auto achieved significant sales growth in 2021, reaching profitability for the first time.
In response to growing competition, Li Auto discontinued the Li ONE and introduced new models like the Li L8 and Li L9. By strategically expanding its product lineup, Li Auto successfully navigated market challenges and achieved record sales in 2023. The company’s focus on meeting consumer needs and adapting to market dynamics has been key to its success.
As Li Auto continues to innovate and expand its product offerings, competitors like AITO are also enhancing their product capabilities. AITO’s revamped M7 SUV, equipped with advanced intelligent driving technology, has seen strong sales performance, challenging Li Auto’s market position.
In response, Li Auto launched the Li L6, its first model priced under 300,000 RMB, which quickly gained market recognition for its high cost-effectiveness. By continuously adapting to market trends and consumer preferences, Li Auto aims to maintain its position as a leader in the NEV market.
