Wei Xiaoli Series 1: The delivery volume of "Wei Xiaoli" is divided, what did Li Auto do right?

Entering July, new energy car companies have successively announced delivery data for June. Among the new car-making forces, Wei Xiaoli's performance has accelerated differentiation. In June, the delivery volume of Li Auto continued to surge. Although the sales of XPEV and NIO rebounded from the previous month, they still did not reach the level of the same period last year.

Li Auto delivered a total of 32,575 new vehicles in June, a year-on-year increase of 150% and a month-on-month increase of 15%. Its cumulative delivery volume in the first half of the year reached 139,117 vehicles, an increase of 130% over the same period last year, and an increase of 91% over the second half of last year.

XPEV delivered 8,620 vehicles in June, a year-on-year decrease of 44% and a month-on-month increase of 15%. Its cumulative deliveries in the first half of the year reached 41,435 new cars, a decrease of 40% from the same period last year and a decrease of 20% from the second half of last year.

NIO delivered 10,707 vehicles in June, down 17% year-on-year and up 74% month-on-month. Its cumulative deliveries in the first half of the year reached 54,561 new cars, an increase of 7% over the same period last year and a decrease of 24% over the second half of last year.

The highlight of Li Auto's success is that it has chosen a segment that suits it - high-end family SUVs, and has avoided direct competition with BYD and Tesla, thereby achieving a counterattack in sales.

Compared with XPEV and NIO, which mainly focus on the 100,000-300,000 market, Li Auto chooses to focus on the 300,000-500,000 high-end SUV market, and avoids the 100-300,000 price range that most manufacturers focus on. The current 300,000 to 500,000 fuel vehicle SUV market is mainly dominated by BBA, while mainstream automakers have relatively few layouts in the 300,000 to 500,000 new energy SUV market.

From the perspective of competing products, the current main competitors for high-end home SUVs include Lynk & Co 09 EM-p and Lantu FREE. Li Auto is superior to competing products in terms of configuration, space, and comfort, and its sales volume is also high in high-end home SUVs. Leading the way in the SUV market.

The success of the Li AutoL series is largely due to its product strength, which caters to the needs of middle-aged men to the greatest extent. Li Auto did not choose to educate consumers with so-called "black technology" like NIO or XPEV, but made the category of "High End SUV" to the extreme. Netizens often joke that Li Auto’s core technologies are “refrigerators, color TVs, and reclining chairs.” recognized by the market.

Since the beginning of this year, the sales volume of Li Auto vehicles has reached new highs month by month, from 15,000 in January to 32,000 in June, delivering a very impressive report card to the market. Whether Li Auto can continue to maintain high growth in the second half of the year depends on whether it can cope with the challenges brought about by subsequent consumption downgrades and intensified competition.

In the context of the current consumption downgrade, consumers will be more sensitive to prices, and vehicle manufacturers need to reduce prices or launch more cost-effective models in a market with fierce price competition to attract consumers' attention and purchase. In the future, Li Auto will need to make adjustments in cost control and product positioning to maintain market competitiveness.

At present, leading players Tesla and BYD have not yet focused on the subdivision of high-end family SUVs. If major manufacturers come in to share the cake, it may squeeze Li Auto's sales and profits.

From the perspective of stock price and sales volume, Wei Xiaoli's sales volume and stock price will approach before November 2022; as the sales volume of Li Auto L series continues to rise at the end of 2022, Li Auto's stock price will also significantly outperform its peers.