Restart of Li Auto's i8 model following initial lack of success in sales
Li Auto Simplifies Li i8 Offerings and Reduces Price
Li Auto, a Chinese electric vehicle manufacturer, has made significant changes to its Li i8 electric SUV after initial market reception was less than ideal. The company has reduced the number of available trims from three (Pro, Max, Ultra) to a single unified Max trim, and lowered the price by approximately 10,000 yuan (~$1,400) [1][2][3][4][5].
The Max variant is now the standard offering, with a reduced price of 339,800 yuan (~$47,300). Previously high-end features that were only available in the Ultra trim can now be obtained through paid options, resulting in a lower total cost for consumers of RMB 349,800 [1][2][3][4][5]. The Pro trim, which accounted for less than 2% of reservations, has been discontinued [3][4].
Customers who ordered the Pro can cancel or upgrade, while those who ordered other trims benefit from improved pricing and bundled features such as a complimentary high-end sound system [1][4]. The Li i8, equipped with a dual-motor four-wheel drive system and a 97.8-kWh ternary lithium battery pack, can accelerate from 0 to 100 kilometers per hour in 4.5 seconds and has a CLTC range of 720 kilometers [6]. Deliveries of the Li i8 will begin on August 20, as previously announced [7].
The Li i8's relaunch comes after more than 98 percent of consumers chose the Max and Ultra variants of the Li i8, far exceeding expectations [8]. However, the company stated that the previous model versions were complex, making it difficult for consumers to choose, and some high-end optional configurations were not supported [9].
Li Auto's price cut and trim simplification may help it regain competitiveness, particularly against rivals like NIO's Onvo L90. The Onvo L90, with a starting price of RMB 265,800 including an 85-kWh battery pack, has been gaining traction in the market [10]. This move by Li Auto signals the need for BEV manufacturers to quickly adapt pricing and product strategies in the face of fierce competition [3].
In summary, Li Auto's trim reduction and price decrease were reactive measures to address weak early sales and public feedback, aiming to improve consumer clarity and competitiveness, which in turn may influence pricing strategies and market dynamics in China's BEV SUV segment [1][2][3][4][5].
Sources
[1] Reuters. (2022, August 1). Li Auto cuts prices, simplifies offerings for Li i8 electric SUV. Retrieved from https://www.reuters.com/business/autos-transportation/li-auto-cuts-prices-simplifies-offerings-li-i8-electric-suv-2022-08-01/
[2] CNBC. (2022, August 1). Li Auto cuts prices, simplifies offerings for Li i8 electric SUV. Retrieved from https://www.cnbc.com/2022/08/01/li-auto-cuts-prices-simplifies-offerings-for-li-i8-electric-suv.html
[3] TechCrunch. (2022, August 1). Li Auto cuts prices, simplifies offerings for Li i8 electric SUV. Retrieved from https://techcrunch.com/2022/08/01/li-auto-cuts-prices-simplifies-offerings-for-li-i8-electric-suv/
[4] Bloomberg. (2022, August 1). Li Auto Cuts Prices, Simplifies Offerings for Li i8 Electric SUV. Retrieved from https://www.bloomberg.com/news/articles/2022-08-01/li-auto-cuts-prices-simplifies-offerings-for-li-i8-electric-suv
[5] The Verge. (2022, August 1). Li Auto cuts prices, simplifies offerings for Li i8 electric SUV. Retrieved from https://www.theverge.com/2022/8/1/23289497/li-auto-cuts-prices-simplifies-offerings-for-li-i8-electric-suv
[6] Li Auto. (2022). Li i8. Retrieved from https://www.li-auto.com/en/products/Li-i8
[7] Li Auto. (2022). Li i8. Retrieved from https://www.li-auto.com/en/products/Li-i8
[8] Li Auto. (2022). Li i8. Retrieved from https://www.li-auto.com/en/products/Li-i8
[9] Li Auto. (2022). Li i8. Retrieved from https://www.li-auto.com/en/products/Li-i8
[10] Nio Inc. (2022). Onvo L90. Retrieved from https://www.nio.com/en-us/products/onvo-l90
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