Li Auto Introduces Mega MPV: A Striking Electric Vehicle
Li Auto has hit the headlines with its new Mega MPV
The Guangzhou motor show witnessed the launch of an attention-grabbing electric MPV called the Mega. This 5.3-meter-long vehicle, designed with a truncated nose and an aero-optimized ‘wind blade’, has become the talk of the town.
Li Auto, a Chinese start-up in the new energy vehicle sector, has emerged as the most successful competitor to Tesla. It has outperformed other brands like Nio, Xpeng, Lucid, Rivian, Fisker, and Zeekr by posting profits in the last two quarters. In October, Li even surpassed Tesla’s sales in China with 40,423 wholesales compared to Tesla’s 28,626, according to Bestsellingcarsblog.com.
Li Auto initially gained recognition and sales growth by offering elegant but somewhat unremarkable large SUVs. However, the company recently made a significant shift by transitioning from plug-in hybrids to electric vehicles.
Unlike many other Chinese electric vehicle brands that are affiliated with large automotive conglomerates, Li Auto, along with Xpeng and Nio, operates independently. Li Auto was founded in 2015 by entrepreneur Li Xiang, who gained fame and fortune by creating Autohome, a Chinese equivalent of Autotrader.
The company’s first car, the Li One SUV, utilized a 1.2-liter turbocharged petrol engine to extend the battery range. Since then, Li Auto has introduced the 7, 8, and 9 SUVs, each measuring over five meters in length and equipped with a 1.5-liter engine. The battery capacity in the Li One 7 is 42.8kWh, providing an electric range of 130 miles.
The Mega: Li Auto’s Pure-Electric Era
The Mega marks Li Auto’s entry into the pure-electric era. During the company’s third-quarter earnings call, Li Xiang highlighted three breakthroughs that the Mega and future Li EVs would offer customers. The first breakthrough is ultra-rapid charging. Reports suggest that the Mega features a 103kWh battery pack with a range of 435 miles and a charging speed of 520kW, enabling it to potentially add 311 miles of range in just 12 minutes.
Although Li Auto does not have an extensive battery-swapping or charging network like Nio or Tesla, it is developing its own ‘5C’ charging network to support its vehicles. The company aims to establish 300 highway ‘supercharger’ stations in China by the end of the year.
Li Auto also promises class-leading interior space and class-redefining design with its future EVs. The company plans to introduce saloons alongside its existing SUV lineup. Li Auto vehicles offer high-tech, multi-screen interiors and flexible seating options suitable for occasional camping.
Additionally, Li Auto incorporates level-two-plus autonomous driving technology enhanced with lidar, reducing the driver’s reliance on manual control.
Li Auto’s Success and Market Position
Since its establishment in 2019, Li Auto has sold over 500,000 vehicles, with 284,647 deliveries in 2023. This places Li Auto ahead of Nio, its main competitor in the premium ‘new energy’ SUV market. Despite being a relatively young company, Li Auto has achieved profitability. In the third quarter of this year, it posted an operating profit equivalent to £262 million, marking its second consecutive profitable quarter. In contrast, Nio reported a loss of £766 million in the second quarter.
Li Auto’s success is reflected in its market capitalization. As of November 21, the company is the world’s 11th most valuable listed car maker, with a market capitalization of $42 billion, surpassing Ford and General Motors.
Future Expansion and Focus on Chinese Market
Unlike its competitors, Li Auto has primarily focused on the Chinese market and has no immediate plans for exports to regions like Europe. The company believes that its vehicle range is not well-suited to European tastes. The Mega, priced at over £60,000, targets a market that is predominantly based in China.
For the foreseeable future, Li Auto intends to maintain its presence in China and continue catering to Chinese consumers.