Redevelopment of Li Auto's i8 model, due to initial unpopularity
Li Auto Relaunches Reduced-Price Li i8 Amidst Competitive BEV Market Challenges
Li Auto, a Chinese electric vehicle (EV) manufacturer, has announced a relaunch of its Li i8 electric SUV, following a less-than-stellar market response to its initial launch. The vehicle, which was first introduced on July 29, initially had starting prices of RMB 321,800, RMB 349,800, and RMB 369,800 for the Pro, Max, and Ultra variants respectively. However, only the Max variant remains, with its price reduced to RMB 339,800.
More than 98 percent of consumers chose the Max and Ultra variants, far exceeding expectations, according to Li Auto. The discontinuation of the Pro and Max variants means consumers can now obtain a vehicle with the same configuration as the Ultra variant through paid options, with the total cost reduced to RMB 349,800, a decrease of RMB 20,000 compared to the Ultra variant.
The Li i8 is equipped with a 97.8-kWh ternary lithium battery pack that supports 5C supercharging and has a CLTC range of 720 kilometers. It is also equipped with a dual-motor four-wheel drive system that can accelerate from 0 to 100 kilometers per hour in 4.5 seconds.
However, this relaunch comes at a challenging time for Li Auto in the highly competitive battery electric vehicle (BEV) market. The company is facing slowing growth momentum, intensified competition from domestic rivals, a limited product lineup, and sales declines in core models.
The domestic EV market in China has become extremely competitive with many new model launches offering larger, more intelligent, and longer-range vehicles. Rivals like Nio, Leapmotor, Xiaomi, and AITO are offering comparable or more advanced family SUVs, directly threatening Li Auto's offerings.
Li Auto’s mainstay L-series (Li L6, L7, L8, L9) is experiencing substantial year-on-year delivery declines of 40-53%. This has contributed to an overall sales decrease of about 2.2% year-to-date and pressure on the company's growth trajectory.
To address these challenges, Li Auto has made internal adjustments such as reducing its annual sales target, cutting budgets by about 20%, and restructuring its sales and marketing departments to improve conversion rates and sales performance. The company also plans to launch a volume BEV SUV, the i6, aiming to compete in a broader segment.
Deliveries of the Li i8 will still begin on August 20, as previously announced by Li Auto. The relaunched Li i8 received about 6,000 firm orders last week, according to some bloggers on Weibo.
Meanwhile, Li Auto is also facing controversy after an i8 crash test embroiled itself and a truck maker. The Onvo L90, a flagship SUV from Nio Inc's sub-brand, officially went on sale on July 31, with a starting price of RMB 265,800 including an 85-kWh battery pack, and deliveries began the next day on August 1. The two models are being widely compared on social media.
References:
- Li Auto’s Li i8 relaunch: Why it matters
- Li Auto's Li i8 electric SUV struggles to find buyers amidst increased competition
- Li Auto Faces Challenges Amidst Relaunch of Li i8 Electric SUV
- Li Auto's Li i8 electric SUV struggles to find buyers amidst increased competition
- Li Auto's Li i8 electric SUV struggles to find buyers amidst increased competition
- Li Auto, in the face of challenges in the competitive electric vehicle (EV) industry, has reduced the price of its Li i8 electric SUV, aiming to boost sales and counteract market pressures.
- The relaunched Li i8, despite its reduced price, is equipped with advanced technology, such as a 97.8-kWh ternary lithium battery pack supporting 5C supercharging and a dual-motor four-wheel drive system.
- The domestic EV market in China is intensifying, with rivals like Nio, Leapmotor, Xiaomi, and AITO offering comparable or more advanced family SUVs, creating a tough competition for Li Auto.
- Li Auto's mainstay L-series vehicles are experiencing significant year-on-year delivery declines, contributing to an overall sales decrease and pressure on the company's growth trajectory.
- In response, Li Auto has made internal adjustments, such as reducing its annual sales target and restructuring its sales and marketing departments, and plans to launch a volume BEV SUV, the i6, to broaden its market reach.
- Meanwhile, Li Auto and a rival company's flagship models, the Li i8 and the Onvo L90, are being widely compared on social media, adding another layer of competition in the electric automotive technology sector.
