Specialist
Former manager at Chinese EV manufacturer
Agenda
- Li Auto’s (HKG: 2015) recent sales volume and structure, sales proportions of L9 and L8, L7’s pre-sales performance, plus current order delivery timeframe
- 2023 EV demand, growth rate of market demand for EVs priced above RMB 300,000, plus Li Auto’s sales outlook
- Price adjustment strategies of Tesla (NASDAQ: TSLA) and BYD (SHE: 002594), plus Aito’s impacts on the competitive landscape and competition with Li Auto
Questions
1.
According to the published data, Li Auto’s delivery volume hit a record high in December 2022, resulting in significant growth of the total delivery volume in Q4. What are the growth drivers? What is the demand for its vehicles across models?
2.
You said the total order volume in Wuhan or Hubei hasn’t been high by now in January. What is the demand structure in the Wuhan or Hubei market? Is the delivery volume ratio of Li L9 to Li L8 in the market close to the 50/50 ratio in the national market? Is there an obvious difference between the two ratios?
3.
You mentioned that the ratio of new orders of Li L8 to Li L9 is about 75/25. Is it because it has been a while since Li L9’s market debut, and customers have already placed orders and are waiting for delivery, while Li L8 is released later and thus has more new orders?
4.
Do you think Li L8 is aimed at working-class customers while Li L9 targets a smaller customer group consisting of entrepreneurs and other high-income groups?
5.
You mentioned that the production capacity and output of Li L8 are still ramping up. How long is the delivery timeframe of Li L8?
6.
What do you think of the positioning of Li L7? What is its role in Li Auto’s product portfolio? What is the current pre-order situation?
7.
What do you think of the overall demand trend of NEVs in 2023?
8.
You mentioned Tesla’s price cuts, and BYD has also adjusted its prices recently. It seems that after the withdrawal of China’s NEV purchase incentive, NEV manufacturers have different reactions. For example, Tesla has lowered its prices to boost sales, while BYD has raised its official guidance prices. Could you analyse the reasons behind that? Do you think Li Auto will take any new pricing strategies?
9.
You mentioned that the demand for EVs priced at around RMB 300,000 may decline in 2023. Considering Li Auto’s planning on Li L9, Li L8 and Li L7, do you think Li Auto will be able to grab more market share in the future?
10.
You mentioned that you are not very confident about the technological competency of Li Auto’s BEVs because the company’s main product is range-extended EVs. What do you think of its BEVs’ competencies or development potential in the future?
11.
What do you think of Aito’s impacts on the overall competitive landscape among NEV manufacturers? What about the competition between Li Auto and Aito?
12.
What do you think of Li Auto’s competitive advantages in channel and store operations and management?
13.
Why can Li Auto propose and take measures flexibly and timely after receiving feedback from sales channels and personnel?
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