On June 28, 2022, LI (Li Auto) marked the production of its 100,000th vehicle. It took LI a full three years to reach this milestone, starting from the S01, its first mass-produced vehicle, which was produced on June 28, 2019.
In the beginning, many people were skeptical of LI and believed that the company would disappear within a year of launching the S01. Despite the mixed market response to the S01, the T03 appeared and helped LI hold its position in the second tier of new energy vehicle makers.
With the T03, LI chose to pursue a low-cost, high-value route. In October 2021, the company launched the C11, a more premium mid-sized SUV with a price range of 150,000-200,000 yuan ($23,000-$31,000) and a top-end model featuring a 90 kWh battery. The C11 helped elevate LI’s overall image and dispelled the notion that the company only makes vehicles for elderly people.
Meanwhile, as the C11 was being registered with the Ministry of Industry and Information Technology, LI’s production qualifications were also transferred to its Jinhua factory for in-house production. LI’s Jinhua factory covers an area of 551 acres, and its plan includes three electric vehicle workshops and four core auto component workshops. Flexible production lines can achieve the simultaneous production of three platforms and multiple models. The plant’s current production capacity is 50,000 vehicles, but it is currently expanding its capacity and is expected to increase its capacity to the planned 250,000 vehicles.
The 100,000th vehicle, a performance version of the C11, was produced at the Jinhua factory. In addition to the C11, LI’s 2.0 strategy also includes the launch of the C01 mid- to large-sized sedan, which is set to be delivered in the third quarter of this year.
Clearly, LI has found confidence in its existing products and has also summarized its own approach: continuing to follow the route of cost-effectiveness. The price of the C11 has doubled from the original T03 to 160,000-200,000 yuan, but this is still the largest medium-sized SUV with the most powerful battery you can buy.
C01 follows the same approach, where customers can buy an extra-large cup of tea for the price of a medium cup.
Based on its products, the LI brand has achieved rapid success, but reaching the 300,000 yuan price point and above is not easy.
For LI, their products can serve as a stepping stone for brand growth, but if they want to succeed and gain a foothold in the market, they still have to continue to work hard.
Source: LI Official
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.