Li Auto's price cuts revealed: executives admit they misjudged market trends

According to news on April 28, 2024, Li Auto announced on April 22 that it will reduce the prices of the 2024 Li Auto L7, Li Li L8, Li Li L9 and Li Li MEGA. Among them, the price of the entire Ideal L9 series has been reduced by 20,000 yuan, the prices of the Ideal L7 and Ideal L8 have been reduced by between 18,000 and 20,000 yuan, and the price of the new Ideal MEGA has been significantly reduced by 30,000 yuan, reaching 529,800 yuan.

According to the editor’s understanding, this price reduction decision stems from Li Auto’s re-evaluation of market trends. Liu Jie, president of Li Auto's product line, said that it was revealed at the 2024 Beijing Auto Show that the company has observed a year-on-year decline in the market since March this year, with a year-on-year decline of 12% in the first quarter. At the same time, the terminal transaction prices of main models of traditional fuel-powered luxury brands have also dropped significantly, which prompted the company to adjust its original optimistic market forecasts. Taking into account the decline in market demand and intensified competition, Li Auto decided to reduce the year-on-year decline in the passenger car market, with a year-on-year decline of 12% in the first quarter. At the same time, the terminal transaction prices of main models of traditional fuel-powered luxury brands have also dropped significantly, which prompted the company to adjust its original optimistic market forecasts. In response to market changes, Li Auto has decided to lower the prices of some models. This adjustment will provide consumers with more competitive prices and help the company in passenger cars

Liu Jie emphasized that this price adjustment is the company's return to health The decision was made in response to the downward trend in the overall consumer price pattern. He admitted that price cuts will have an impact on the company's gross profit margin, but the company believes that while creating value for users, it also needs to bear this part of the impact by improving operating efficiency. He further explained that improving operating efficiency does not mean simply passing costs to partners, but examining and eliminating redundancies and waste within the company to ensure that resources can be focused on matters of greatest user value.

The newly launched Ideal L6 has not been affected by this price reduction. Li Auto clearly stated that the pricing of the Li Auto L6 has fully taken into account market expectations, and therefore there will be no secondary price adjustments. At the same time, the company also denied the possibility of launching the L6 Pro model with lower-than-ideal configurations, emphasizing that every configuration is carefully designed around the needs of young family users.

The above is the detailed content of Li Auto's price cuts revealed: executives admit they misjudged market trends. For more information, please follow other related articles on the PHP Chinese website!