Li Auto: How It Became the Trusted Smart Choice for Millions of Families

Li Auto's Path to Success in the High-End New Energy Vehicle Market

The data for the third quarter of 2024 is out, and Li Auto has made a significant mark with impressive numbers: it captured a 17.3% market share in China’s new energy vehicle (NEV) sector and nearly 18% in the premium segment priced over 200.000 yuan. These achievements not only highlight Li Auto's robust technological and product strengths but also demonstrate its exceptional brand-building and market strategies.

Focusing on Family Needs: Precise Positioning That Builds a Brand

Li Auto's success is rooted in a straightforward but shrewd strategy: targeting one core user—families. This strategy is evident from the design of the Li ONE, which features a 6-seat layout, spacious interiors, and smart configurations, all aimed at creating the ideal travel solution for families. Many users have noted that Li Auto’s design aligns seamlessly with the lifestyle of Chinese families, with “one vehicle for the whole family” being a common reason for choosing the brand. This precise positioning not only helped Li Auto secure a firm spot in consumers' minds but also carved out a unique brand identity in a fiercely competitive market.

Technological Innovation: Enabling a “Worry-Free Driving” Experience

Another noteworthy aspect of Li Auto is its investment and achievements in technological innovation. What concerns NEV consumers the most? Range. Li Auto tackled this issue head-on with its proprietary range-extender electric technology, effectively eliminating “range anxiety.” What does this mean? It means drivers no longer need to worry frequently about battery life, even on long trips.

In October 2024. Li Auto took another step forward by introducing its proprietary “end-to-end + VLM” dual-system intelligent driving solution, making it the first brand in the industry to achieve large-scale user deployment of smart driving features. This milestone positioned Li Auto as an industry leader. Additionally, its AI voice assistant, “Li Xiang Tong Xue,” enhanced by multi-modal cognitive models, provides a more natural and intelligent user experience. Family members can interact with “Li Xiang Tong Xue” as if it were an attentive companion, making it incredibly user-friendly. These technological advancements have gradually cemented Li Auto as synonymous with smart travel.

Smart Manufacturing: Enhancing Efficiency and Quality

High-quality output requires an efficient manufacturing process. Li Auto has significantly boosted production efficiency and product quality through smart manufacturing upgrades. The company’s green smart manufacturing facilities in Beijing and Changzhou, Jiangsu, not only automate and streamline production processes but also use its self-developed Li-MOS smart manufacturing system to enable full lifecycle traceability for every vehicle. This system ensures that every part and every step of production is thoroughly documented. This approach not only reduces production costs but also boosts efficiency, fundamentally ensuring the quality of each car. In a competitive market environment, this manufacturing advantage helps Li Auto maintain its competitive edge.

Robust Supply Chain Management for Market Stability

In manufacturing, supply chain management is essential. Li Auto understands this well and has long maintained close partnerships with local suppliers to build a comprehensive supply chain system. By collaborating closely with domestic suppliers, Li Auto ensures the quality and stability of key components and effectively controls production costs, enhancing supply chain resilience. This model not only helps Li Auto navigate various market changes and challenges but also provides a solid foundation for the company’s long-term growth. In an unpredictable market, strong supply chain management acts as a “stabilizing force,” enabling consistent production and delivery capabilities.

Building Brand Strength and Earning User Trust

A brand’s influence isn’t built overnight through advertising but through transactions backed by user trust. Li Auto continuously optimizes its products and services with a focus on user experience, earning widespread market recognition. Data shows that Li Auto’s Net Promoter Score (NPS) ranks second in the industry, with a user favorability rating of 54%. The gradual enhancement of brand image and accumulation of positive user feedback have laid a strong foundation of trust for Li Auto among consumers. This strategy of “brand growth driven by user recommendations” ensures that Li Auto maintains a solid position in an increasingly competitive market.

Surpassing Luxury Brands Through Innovation and Adaptability

Faced with competition from traditional luxury brands like Mercedes-Benz, BMW, and Audi, Li Auto didn’t choose to follow but to innovate, showcasing superior market adaptability. In the fields of intelligent driving and smart cabins, Li Auto has reached world-class standards and, in some respects, surpassed traditional luxury brands. Thanks to its solid technology and precise focus on the high-end market, Li Auto has steadily established itself in the premium NEV sector, attracting consumers who value intelligent and high-end experiences. The traditional advantages of luxury brands seem less formidable when met with Li Auto’s innovative approach.

Looking Ahead: The Path Forward for Li Auto

Li Auto’s future appears promising. Faced with upcoming challenges and opportunities, the company plans to continue strengthening its partnerships with upstream and downstream enterprises to drive high-quality development in the NEV industry. As the NEV market continues to grow, Li Auto will keep exploring and optimizing its technological research and development, supply chain management, and user experience. This will not only fuel its own growth but also inject new vitality into the industry. Through collaboration across the industry chain, Li Auto is poised to remain a key player in China’s smart electric vehicle landscape.