Today, Li Auto officially announced that from now on, the 2024 Ideal L7, Ideal L8, Ideal L9 and Ideal MEGA will adopt a new price system, and new users and users who have ordered but not delivered can enjoy the new price. At the same time, Li will also provide cash back to owners of 2024 Li L7, Li L8, Li L9 and Li MEGA, and will push cash back notifications through Li Auto App.
It can be seen that in addition to the ideal L6 that has just been listed, the ideal other models on sale have been reduced by different ranges, among them, the ideal L9 has been reduced by 20,000 yuan, and the price of L7 and L8 has been reduced by 18,000 ~ 20,000 yuan, and the highest decline is the ideal MEGA, reaching 30,000 yuan, and the current price is 529,800 yuan.
In 2023, Li Auto successfully delivered as many as 376,000 vehicles with the hot sales of three models of the L series, thus ranking first among many emerging automakers. However, since 2024, the intensity of market competition has shown an increasing trend. First of all, BYD took the lead in implementing a price reduction strategy, which triggered a wave of price cuts from other automakers. The ideal direct competitor has seen a rebound in sales, and the new Xiaomi car is coming fiercely. On the other hand, soon after the launch of the high-end model MEGA, it fell into the whirlpool of public opinion, and sales were far less than expected. In addition, the company has revised its delivery target for the first quarter of this year from 100,000 units to 76,000 to 78,000 units. Although the sales volume in the final quarter was 80,400 units, a year-on-year increase of 52.9%, it was still lower than the 85,800 units sold in the first quarter. The pressure on Li Auto is not insignificant.
However, with the launch of the Ideal L6, the price band of Li Auto has been extended to less than 250,000 units, and the orders of the L6 have exceeded 10,000 units within 72 hours of its launch, which shows that the product has been widely recognized by users. However, whether it can become a big killer to support the ideal "status of rivers and lakes" still needs time and the market to test.
Li Auto's price reduction strategy has also attracted the attention of the industry. Some analysts believe that Li Auto's price reduction strategy is sensible and can help it expand its market share and increase brand awareness. At the same time, some analysts believe that Li Auto's price reduction strategy may have a certain impact on its profitability.
In the author's view, this price adjustment is a market strategy to exchange price for volume, with the purpose of expanding market share, promoting sales growth, and maintaining the title of sales champion. Although the price reduction may have a certain impact on its profitability, in the long run, Li Auto's price reduction strategy is expected to bring more market opportunities and development space for it.
After the announcement of the price reduction, Li Auto's price reduction strategy has received attention and feedback from the capital market. Li Auto (HK2015)'s share price showed a trend of opening low and moving low on the day of the release, falling as much as nearly 10%, and closing down 8.33%, hitting a new low since 2024. So, what impact will this price reduction have on Li Auto's performance? Will its product sales increase as a result? Will Li Auto further adopt a price reduction strategy in the future? We will continue to pay attention to and conduct a comprehensive and in-depth analysis of relevant information.