On November 9th, Li Auto held a financial report meeting. During the meeting, Li Auto‘s CEO, Li Xiang, once again mentioned Huawei. Currently, there is competition between some models under Li Auto and the models from Huawei’s Smart Selection Vehicles. Previously, many netizens believed that the strong sales of the new model AITO M7 would impact the market for Li Auto‘s L7. However, this time Li Xiang expressed that Li Auto‘s attitude towards Huawei is: 80% learning, 20% respect, and 0% complaints.
At the same time, Li Xiang also mentioned that Li Auto is actually facing competition in nine aspects across three dimensions: corporate culture, user brand, corporate strategy, product research and development, sales service, supply manufacturing, human resources organization, processes, and company operations.
It is worth mentioning that in June 2023, Li Xiang revealed that in the third quarter of 2022, the release and operation of AITO M7 directly crippled Li ONE. We have never encountered such a strong opponent before, and for a long time we were completely defenseless. Huawei’s powerful capabilities directly caused the collapse of Li ONE’s sales and early cessation of production. It incurred losses of over one billion within a quarter, and our team was severely affected. I couldn’t sleep at all because our abilities were simply too weak; we collapsed when faced with their basic moves, which also led to a large number of product experts who had been working hard on the front line leaving their positions.
Now, Li Auto‘s monthly sales have exceeded 40,000 vehicles and are still steadily growing. Meanwhile, Huawei’s Smart Selection Vehicles business is also thriving. According to Richard Yu, the Executive Director of Huawei, pre-orders for the M9 model have already surpassed 30,000 units, while pre-orders for the new M7 model have exceeded 86,000 units.