Li Auto, a leading electric vehicle (EV) manufacturer in China, is set to lose Zhang Xiao, the president of its second product line. The departure comes amid underperformance by the Li i8, an all-electric SUV that has failed to meet internal sales targets since launching last year.
Key Takeaways
- Zhang Xiao’s exit is linked to poor performance of the Li i8 electric SUV.
- The company delayed the Li i8 launch by one year but still fell short on sales expectations.
- In November, the Li i8 delivered 6,719 units, totaling 20,396 since its August relaunch.
Li Auto established a product line department in April 2024 to better manage vehicles based on price ranges. Zhang Xiao oversaw models priced between RMB 300,000 and RMB 400,000, including the Li i8, which was launched as its second battery electric vehicle (BEV) model.
Despite efforts to refine styling and product design from mid-2023 through early 2024, the Li i8’s market performance has disappointed. After an initial poor reception, the company relaunched it on August 5 with a reduced configuration range and lower price point.
The Li Auto L7 and L8 are also part of Zhang Xiao’s portfolio but have not faced the same challenges as the Li i8. The Li Mega MPV and Li L9 large SUV in the first product line, managed by Tang Jing, remain among the company’s best-selling models with prices above RMB 400,000.
Li Auto’s third product line includes vehicles priced below RMB 300,000. These are overseen by Li Xinyang and include the Li L6 and i6. The lower-priced segment has seen more stable sales compared to Zhang Xiao’s second-line models.
Frequently Asked Questions
What is causing the underperformance of Li Auto’s i8?
The poor market reception and disappointing sales figures are likely due to a combination of factors, including initial high pricing, delayed launch timing, and intense competition in China’s EV market.
How many units has the Li i8 delivered since its relaunch?
The Li Auto i8 has delivered 20,396 units since August when it was relaunched with a lower price point. In November alone, it reached sales of 6,719 units.
With Zhang Xiao’s departure and the ongoing challenges faced by the Li i8, Li Auto will need to reassess its strategy for this model moving forward as it seeks to maintain growth in a competitive market environment.
