Matryoshka model strategy: Li Auto's multiple electric SUVs lead the market trend

According to news on September 25, Chinese electric vehicle manufacturer Li Auto recently released its new product strategy and development plan, aiming to further consolidate its leading position in the electric vehicle market. It is reported that the company will increase its product launch efforts to meet the needs of different consumers and adopt innovative market strategies.

Since its establishment, Li Auto has been committed to promoting the development of the electric vehicle market. From the original Ideal One to the current Ideal L7, L8 and L9, the company continues to expand its product range. In the price range of 300,000-500,000 yuan, these models have completely surpassed the first-tier luxury brand BBA and become the luxury electric SUV of choice for many families. The most eye-catching thing is Li Auto’s matryoshka model strategy. While the L7, L8 and L9 look similar, they differ in performance and functionality. The Air model focuses on cost performance, the Pro model emphasizes driving experience, and the Max model enhances driving assistance and entertainment functions. This clever strategy allows consumers to choose the right model based on their needs and preferences, with relatively little difference between the three models.

According to the editor’s understanding, Li Xiang, CEO of Li Auto, said that this diversified product strategy is a correction to the previous strategy. The company initially planned to produce only 300,000 cars by 2025, but later realized that it needed to increase the number to 1.6 million, so it adopted the matryoshka model to expand its product lineup as quickly as possible to attract more potential consumers

In addition, Li Auto also announced a "dual-energy strategy", including extended-range electric vehicles and pure electric vehicles. By 2025, they plan to launch a super flagship model, as well as 5 extended-range electric models and 5 high-voltage pure electric models to fully meet market demand with prices above 200,000 yuan. Among them, the Lilith L6 is positioned as a smart luxury five-seat SUV for families. Its price will be below 300,000 yuan. This will also be Li Auto’s first model in the price range below 300,000 yuan.

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