Li Auto Launches New i8 Model Amidst Market Dynamics

At 7:30 PM, Li Xiang was passionately introducing the Li Auto i8 on stage while I hurried through a shopping mall courtyard in Beijing's Wangjing area. On a weekday evening, the mall was not crowded, and Li Auto did not have its own store here, only setting up a promotional area in the courtyard. Four employees were gathered around two cars: one group was presenting the vehicle to potential customers, while another was studying vehicle specifications on their phones. They were clearly also watching the launch event. The Li Auto i8 had been on display for several days, and videos of the i8 had dominated online content in the past couple of weeks, further amplified by previous interior leaks. It is evident that Li Auto has mastered the art of generating buzz. Details about the product were already well-known before the official reveal. However, the fact that the launch event was vibrant indicates the unique attention the i8 commands. The pricing strategy is notably intriguing, as the starting price of the i8 is set at 321,800 RMB, identical to that of the Li L8, with the mid-spec Max version also sharing the same price. The top-tier Ultra version of the L8 is even 10,000 RMB more expensive than the i8. Such pricing strategies can seem counterintuitive, as electric vehicles from the same brand typically cost more than hybrid models, yet the i8 is priced lower than some speculations. This suggests that Li Auto may not have aimed to position the i8 as a direct competitor to the electric L8. The i8 is described as a smaller version of the MEGA Home, with the price reflecting Li Auto's minimum threshold for six-seat models. Looking at competitors, the Leado L90 is pre-priced at 279,900 RMB, with its official pricing set to be confirmed soon. Given the positioning of Leado as a mainstream brand under NIO, the price difference between the two models seems reasonable. Many have remarked that the i8 exceeds expectations, while others find the L90 more appealing, indicating a clear distinction between the two vehicles in both brand identity and pricing, avoiding direct competition. As the number of products and competitors increases, pricing strategies require multiple considerations, which can lead to challenges for some manufacturers. From the launch perspective, Li Auto has managed to maintain a cautious yet bold approach, but the real challenge lies in effectively targeting consumers, particularly those who are hesitant and lack loyalty to the brand. The i8's delayed launch, initially planned for last year, was a result of unmet expectations for the MEGA, but this delay has allowed Li Auto to develop a more complete charging network. By the time of the i8's launch, Li Auto had over 3,000 fast charging stations, significantly addressing range anxiety for electric vehicle owners. Li Auto's unique selling point has been its extended range capabilities, but the sales target for the L series has been revised down, raising questions about the remaining market for hybrids. Li Auto needs to accelerate its electric vehicle strategy to cater to the growing electric vehicle customer base among families, which has become a crucial topic for the second half of this year. The question remains whether any brand can successfully sell both hybrid and electric vehicles simultaneously. Historical data suggests this may not be optimistic. However, if the strategy involves operating two distinct lines under the same brand for different energy types, the outlook may not be as dire. The i8's launch timing, whether opportunistic or reactive, is ideal. Nonetheless, breaking the strong association between Li Auto and hybrid vehicles presents significant challenges. Li Xiang's demeanor at the launch was less exuberant compared to the MEGA's debut, reflecting the patience gained from overcoming past hurdles. Regarding the i8's design, Li Xiang faced questions about its SUV classification, responding that there are no strict definitions for SUVs. While the i8's distinct appearance may not fit traditional SUV standards, it does stand out in terms of design and recognition. The i8's market potential may benefit from the surprising statistics shared about the MEGA, including a 30% single-owner demographic and 42% of usage time spent stationary, indicating diverse usage patterns that could broaden the appeal of the i8. Ultimately, Li Auto aims to redefine its identity beyond just a 'family car'.