Li Auto Launch Event: Slight Enhancement in Product Capability, Firm Stance Against Price Cuts, Initial Foray into Pure Electric Vehicles

Press Conference Summary:

On March 1st, Li Auto held its Spring launch event, unveiling the flagship all-electric MPV model MEGA and the 2024 facelifted L series models.

Li Auto Mega: Li Auto plans to create a unique product with strong product capabilities and differentiation through 5C fast charging to address range anxiety, spacious interior, avant-garde design, low energy consumption, and intelligent driving.

1. Price: Li Auto Mega offers only one configuration, Mega Max, with standard features equivalent to the top configuration. The nationwide retail price is 559,800 yuan, with deliveries scheduled for March 11th.
2. Configuration and Performance:
3. Spacious Interior + Low Aerodynamic Drag: 5-door 7-seater all-electric MPV with a teardrop-shaped profile, flawless body design, and rear wind blades, aerodynamic drag coefficient of 0.215.
4. 5C Fast Charging and High Range: Utilizing an 800V architecture, equipped with the Kirin 5C battery pack jointly developed with CATL, capable of charging for 12 minutes for a range of 500 kilometers. Total battery capacity of 102.7 kWh, CLTC ultra-long range of 710 kilometers.
5. Low Energy Consumption: Only 15.9 kWh per 100 kilometers, lower than ZEEKR 009 at 18.9 kWh.
6. Intelligent Driving: Dual Orin-X NVIDIA chips with computing power of 508 TOPS, intelligent cockpit equipped with Qualcomm 8295P high-performance chip.

Compared to ZEEKR 009, Li Auto Mega excels in spacious interior, low aerodynamic drag, low energy consumption, fast charging speed, and leading intelligent driving technology over ZEEKR. However, in terms of range, the range of Li Auto Mega is similar to ZEEKR 009WE version (500 kilometers), but falls behind ZEEKR 009ME version with a longer range of 822 kilometers.

Currently, the company has not officially disclosed the specific number of Mega pre-orders. However, considering ZEEKR 009's stable monthly sales of around 2,000 units after its launch, Dolphin Research can conservatively estimate annual sales of 32,000 units for this year (monthly sales of around 3-4k units).

Li Auto also unveiled the 2024 facelifted L series, with deliveries starting on March 3, 2024:

In terms of pricing, except for the L7/L8 Pro versions which have increased by 10,000 yuan, the prices of other versions remain unchanged, which is beneficial for Li Auto's gross profit margin recovery. The first quarter is expected to be the low point for gross profit margin (but Li Auto's conference call guidance is around 20%).

Specific upgrades include:

1. Battery capacity and range improvement: L9 series upgraded to a 52.3 kWh large battery, L7/L8 Max upgraded to a 52.3 kWh large battery.
2. Intelligent cockpit and intelligent driving: Upgraded from Qualcomm 8155 chip to Qualcomm 8295 chip across all 2024 Li Auto L series models, except for the Max models, Li Auto L7 and L8 Pro models will also come standard with AD Max.Other Features: The entire Li Auto lineup now comes standard with Magic Carpet air suspension; all L-series models come equipped with 9 safety airbags, including the addition of dual-chamber far-side airbags.

Li Auto 5C Charging Station Layout: Plans to invest at least 6 billion RMB in the next few years to build over 5,000 company-operated 5C supercharging stations, allowing Li Auto 5C supercharging stations to cover 95% of the national highways and important expressways. By the end of this year, over 2,000 high-speed and urban supercharging stations will be completed.

Press Conference Text

Li Auto Mega Release Information:

Price: Li Auto Mega offers only one configuration, with over 100 flagship configurations of Li Auto Mega Max all included. The unified national retail price is 559,800 RMB.

Exterior Colors: Comes standard with gray metallic paint, silver metallic paint, and panda white pearl paint. You can also choose to upgrade to the Elephant Emblem special pearl paint, visible at first glance, for an additional cost of 10,000 RMB, with interior options in white and brown.

Reservation Benefits: Deliveries start on March 11th. Large order customers before March 11th and our reservation customers will receive a free upgrade to a 20 kW DC charging pile or 6,000 kWh of Li Auto supercharging rights. Customers who order from March 11th to April 30th will enjoy 3,000 kWh of Li Auto supercharging rights.

Currently, mainstream high-end MPVs on the market have poor performance: Japanese high-end MPVs have comfortable seats but limited space; German high-end MPVs have spacious interiors but poor sound insulation, suspension, and power performance, almost without intelligent cabins and intelligent driving.

Based on Li Auto's understanding of the MPV market, a solution is proposed - Li Auto Mega, aiming to address 5 issues: What kind of electric vehicle does a large family need? How to design a model that is captivating? What kind of mobile space does a large family need? How can an MPV achieve optimal performance and safety? What kind of intelligent experience does a large family need?

Li Auto Mega is a whale-sized product created by Li Auto, excelling in seven aspects: energy efficiency comparable to fuel vehicles, modern design, sports car aerodynamics, whale-sized space, comfort of a luxury sedan, safety of a flagship SUV, and the increasingly intelligent Li Auto system.

Regarding Issue One:

The first requirement is space. Under the current framework of traditional fuel vehicles, the space potential of MPVs has been maximized. To achieve a qualitative change, the only path forward is pure electric. After meeting the first requirement, the next is to achieve long-distance freedom. By improving charging efficiency, Li Auto aims to charge 500 kilometers in 12 minutes, achieving 5C charging.

Li Auto's 5C high-speed supercharging station has a peak charging power of >520kW, with an average charging power of >400kW. A 12-minute charge increases the CLTC range by 500 kilometers.

How is this achieved?

1. Adopt an 800-volt architecture, equipped with Li Auto's high-voltage pure electric platform.
2. Collaborated with CATL for three years to develop the first Kirin 5C battery pack, with a total capacity of 102.7 kWh. The CLTC ultra-long range is 710 kilometers, not only fast charging but also safe. In terms of lifespan, the 5C battery cells are charged at 5C, which is more than 50% longer than mainstream ternary cells charged at 2C.

1. Transforming supercharging stations into essential configurations for Li Auto's pure electric products, serving as range extenders for electric models like Li Auto Mega. By the end of last year, over 300 supercharging stations had been built. This marks the beginning of Li Auto's charging network, with a commitment to faster and more extensive station construction.

Plans to invest at least 6 billion RMB in the next few years to build over 5,000 direct-operated 5C supercharging stations, covering 95% of national highways and important expressways. City charging stations using a franchise model will also be widely established by 2024. The average charging power of Li Auto's urban supercharging Mega can still exceed 300 kW. It only takes 15 minutes to charge 500 kilometers. For high-speed 5C supercharging stations with higher costs and lower profitability, they will be fully self-operated. For city 4C supercharging stations with lower costs and higher profitability, a franchise model will be adopted. By the end of this year, over 2,000 high-speed and city supercharging stations will be completed.

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Regarding Issue Two:

Two bold assumptions: First, the MPV must achieve the aerodynamic drag coefficient of a sedan to significantly reduce energy consumption; Second, create a symbolic design that leads the era and touches the soul.

Assumption One: For pure electric vehicles, the aerodynamic drag coefficient directly affects range and energy consumption. The aerodynamic drag coefficient of traditional MPVs is generally above 0.3, while the Li Auto Mega has been measured at only 0.215.

Li Auto has created the world's most energy-efficient pure electric four-wheel-drive MPV, with energy consumption of only 15.9 kWh per 100 kilometers, lower than most four-wheel-drive pure electric sedans. With home charging, the energy cost per kilometer is only 7.6 cents.

Assumption Two: Subverting the traditional MPV design with a teardrop-shaped front end, a sloping roof, and a sharp rear. From the hood to the rear of the roof is an elegant and smooth curve that allows the airflow to flow as close to the body as possible, reducing separation. The rear blade is a very complete airflow separation line that allows the airflow to cleanly leave, making a significant contribution to reducing the aerodynamic drag coefficient of the entire vehicle.

Regarding Issue Three:

A large family needs spacious, comfortable, user-friendly, and high-quality mobile space. How to achieve it?

Spacious:

Interior Space: The Mega has flagship-level body dimensions, with a length of 5.35 meters, width of 1.965 meters, height of 1.85 meters, and a wheelbase of 3.3 meters. The usable space length of the Mega reaches 3,791 millimeters, 321 millimeters longer than the Alphard.

The second-row seating space exceeds that of the BMW 7 Series long wheelbase, while the third-row seating space exceeds that of the BMW 5 Series long wheelbase.

Trunk Space: The volume is 5 times that of the Alfa. With 7 passengers on board, the trunk can accommodate 4 28-inch suitcases, two 20-inch carry-on suitcases, and two backpacks. For the first time, magic folding seats are used, creating two independent spaces after folding the front seats, making the interior tidier and preventing sudden stops.

Interior Design: Simple and practical.

1. Glass Area: The total glass area of the vehicle exceeds 8.26 square meters, with the second-row side windows reaching half a meter in height, larger than the second-row windows of the Alfa.

2. Headliner: For the first time, a brand-new white premium velvet material is used.

3. Seats: The Li Auto Mega's seven seats all have seat heating, with the four seats in the front two rows equipped with seat ventilation and 16-point massage. The two independent large sofas in the second row surpass the Alfa in seat cushion length, width, and seat back height. The two seats also come with integrated leg rest cushions that can be heated, along with 4D vibration that children love, allowing the seats to fully recline.

Driver's Seat: Carpeted seats that automatically adjust seat cushion firmness based on different driving modes, with 16-point massage, ventilation, and heating.

Front Passenger Seat: A queen seat that can recline flat, equipped with a heated leg rest, 16-point massage, ventilation, and heating.

Third-Row Seats: Seat cushion length of 530mm, with electric backrest angle adjustment. A 160mm central aisle for easy access to the third row, providing clear visibility and an open space.

Comfort:

1. In-Car Electronics:

Intelligent dual-use refrigerator with a compressor that cools and heats faster.

Intelligent fresh air conditioning system with a dual-layer air flow design, equipped with a carbon dioxide sensor and negative ion generator.

Super Cinema: Equipped with a new platinum sound system, standard with 21 world-class PSS in-car audio systems. The Mega features a 17-inch and two 15.7-inch OLED screens, all using fourth-generation OLED technology, with screens certified by Rhine for low blue light. The Li Auto Mega is the world's first model to offer both Dolby World and Dolby Atmos simultaneously. The screen resolution for projection has been increased to 3K, and the sound channel has been upgraded from 3 channels to 8 channels.

User-Friendly:

Seats: All three rows of seats are power-operated, providing a more flexible layout for this mobile flat. The backrest of the second row can be fully reclined to connect with the third row, forming a super large bed. After setting up the bed, both the first-row seats and the trunk can still be used normally, and the first and second rows can be connected. The second-row seats also feature safety design.

Boarding and Alighting: The extra-large power sliding doors with hidden handles can be easily opened with a light press, equipped with anti-pinch function. The interior also features extra-long armrests and second-level footrests. The unique OE tailgate can be opened even in tight spaces, without the need for tall individuals to bend down.

Energy Fortress: Equipped with four 50-watt wireless charging panels, six type C charging ports in the car, and a 220V 2.2kW in-car power supply under the refrigerator.Regarding Issue Four:

Ensure a spacious interior while incorporating better suspension and higher safety standards in the design.

Performance:

1. Power: The Li Auto Mega features a dual-motor all-wheel-drive system, delivering unmatched acceleration and smooth power comparable to a V8 engine, with a 0-100 km/h acceleration in just 5.5 seconds.

2. Air Suspension: The Li Auto Mega is equipped with the Max Magic Carpet air suspension, featuring front double wishbones, rear H-arm multi-link independent suspension, dual-chamber air springs, and CDC dampers.

Combined with the largest HUD streaming rearview mirror in the MPV segment and oversized A-pillars for enhanced safety visibility.

The air suspension system offers continuous growth capability with a height adjustment range of 70mm. It has various modes, such as a loading mode for transporting items and an escape mode for special road conditions, automatically raising the body by 40mm.

1. Noise: The entire vehicle is fitted with double-layer laminated glass on all three rows, providing exceptional quietness.

Safety:

1. Fortress-like Safety Body: The body's torsional stiffness reaches up to 44,000 Nm/degree; in collision tests, both driver and passenger sides achieved a 25% offset collision rating. Emphasizing third-row safety, it significantly exceeds safety regulations, ensuring the safety of third-row passengers even in an 88 km/h, 70% offset rear-end collision test. The collision energy in this test is 1.21 times the highest U.S. standard and 3 times the Chinese standard, thanks to the global MPV's highest-strength aluminum alloy rear crash beam used in the Mega, an integrated aluminum alloy thick floor frame, providing 800mm of cushioning space in the third row, and using ultra-high-strength steel exceeding 1 gigapascal for the third-row seat back frame.

2. Safety Airbags: Comes standard with 9 safety airbags and side curtain airbags, including the latest far-side airbags, with a capacity of 90 liters and a length of 3.2 meters, fully covering all three rows of the vehicle.Li Auto's 2024 L Series:

Configuration and Pricing:

• 2024 L7: Air/Pro/Max priced at 319,800/349,800/379,800 RMB;
• 2024 L8: Air/Pro/Max priced at 339,800/369,800/399,800 RMB.

Smart Features:

• Wind-assist: Placing the digital rearview mirror on the HUD, retaining the physical exterior rearview mirror, and standard streaming interior rearview mirror.

Regarding Issue Five:

Hardware Configuration:

The intelligent driving chip is the dual NVIDIA Orin-X, with one 128-line LiDAR and 360-degree cameras, combined with Bev's large model and network occupancy.

Functionality:

Introduced OTA version 5.2 in the first half of this year, enabling full-scene intelligent driving, Mega lane changes, overtaking, etc.; command driving; automatic parking; night-time high-speed braking at 120 km/h, and night-time urban braking at 90 km/h.

Intelligent Space Configuration:

Hardware: Equipped with Qualcomm's flagship 8295 P high-performance chip, with a computing power of 60 TOPS; internally using two sets of IR and RGB binocular vision sensors, and 6 sets of dual-microphone array microphones.

Algorithm: Equipped with Mind GPT large model.

Functionality: Family comics, gaming, music listening, movie watching, WIFI hotspot, wireless screen mirroring, etc.

Advanced Manufacturing Technology:

• The super-large panoramic glass automatic robot can complete installation in 50 seconds, developed the first domestically large-size aluminum sliding door stamping technology, and uses advanced aluminum aurora flying welding.

Work Environment:

Shaping a better working environment in the factory, ensuring that every craftsman works in a comfortable temperature because only a good manufacturing environment can produce high-quality products. We are willing to pay higher wages.

• 24 款 L9: Pro/Max priced at 42.98/45.98 million RMB.

• Color: New addition of baby blue.

• Order before March 31st and receive an additional 5,000 RMB optional fund.

• Delivery date: March 3, 2024.

• The intelligent U-turn assistance function reduces the turning diameter by 0.5 to 1 meter for low-speed U-turns. The development of this feature has been completed, but testing is still required. It is expected to be provided to all Li Auto L series users and MEGA users in Q3 of 2024 through OTA.

• Battery upgrade: The 2024 Li Auto L series will be equipped with a 52.3 kWh large battery range extender system.

The 24 L9 models will come standard with the large battery CLTC pure electric range extended to 280 kilometers, making city driving almost entirely covered by pure electric power. The efficiency of the range extender system has also been optimized. The total range of the L9 CLTC reaches 1,412 kilometers.

The 52.3 kWh battery pack will also be equipped in the 24 L7 Max and L8 Max models, making city driving easier and long-distance travel worry-free.

The range extender electric system of the 2024 L series. The 52.3 kWh large battery allows the pure electric range to exceed 280 kilometers and the comprehensive range to exceed 1,400 kilometers. A family's energy fortress, with external discharge, in-car 220V power supply, dual 50W air-cooled wireless charging, and more.

• Chassis Suspension

The 2024 L series will feature the Magic Carpet air suspension as standard across the board, aiming to provide a top-notch driving experience to all users. The 24 L7 and L8 will come standard with the Magic Carpet air suspension Pro, equipped with a single-chamber air spring and CDC damper; the L9 will come standard with the Magic Carpet air suspension Max, equipped with a dual-chamber air spring and CDC damper.3. Safety, Health, Comfort

Safety: Li Auto is the only car brand that has received the highest safety rating from C-NCAP for all its models. The 2024 L series will come standard with 9 safety airbags, including the newly added dual-chamber far-end safety airbags, providing better protection for passengers in rollover and side impact scenarios.

Health: The L7, L8, and L9 have all received a five-star health rating in car health tests. The 2024 L series is equipped with a carbon dioxide sensor that automatically detects the CO2 concentration inside the car, switches to fresh air, and simultaneously increases the negative ion generator to continuously purify the air.

Comfort: The L7 and L8 will be upgraded to SPA-level ten-point massage seats, along with standard features such as seat ventilation, seat heating, and heated steering wheel.

The flagship 6-seater L9 will also receive further upgrades. Firstly, we have developed a special second-row queen seat for the L9. The backrest leg support, footrest seat angle, and seat front and back can be electrically adjusted infinitely to match the needs of different family members with different body shapes, allowing for a maximum recline of 140 degrees. Combined with seat ventilation, seat heating, leg heating, and a 16-point full-body massage, it provides unparalleled comfort for the family. Secondly, the L9 will also feature a main driver's seat blanket, intelligent adjustment of seat cushion hardness, and a 16-point massage ventilation and heating system. The top-level driver's seat is on par with Mega. Thirdly, all four seats in the first and second rows of the L9 will be upgraded to a 16-point full-body massage.

By redesigning the internal structure of the central aisle, the well-received central aisle storage space in the L8 and L9 has also been realized in the L7. Through optimized seat design without compromising seating space, the L8 now has a second-row small table. By using a smaller compressor and optimizing space layout, the L7 and L8 will also feature the highly popular smart refrigerator, standard on the Pro and Max models.4. Intelligent Driving

In 2024, the 24 models of the L series will all upgrade their intelligent spatial computing chips to the high-performance Qualcomm 8295 P. The intelligent spatial SS Max and SS ULTRA with rear cabin entertainment screens will be upgraded to the 8295 P high-performance version. With 60 TOPS of AI acceleration computing power, the intelligent spatial SS Pro with a full dual-screen setup will be upgraded to the 8295 P standard version. With 30 TOPS of AI acceleration computing power, we will also offer a paid upgrade to the 8295 P for 23 models in the second quarter of this year.

In terms of spatial perception capabilities, the 24 models will adopt RGB plus IR visual modules, combined with a newly upgraded dual-microphone array, providing richer multimodal information input and expanding the possibilities for Li Auto users.

Regarding the audio-visual system, the 24 models of L9 will all come equipped with the fourth-generation OLED screens, offering enhanced clarity and brightness. The Platinum sound system will also be featured in the L series, along with the world's first Dolby World and Dolby panoramic dual-Dolby cabin, elevating the entertainment experience for families.

In terms of intelligent driving, in addition to the original Max model, the 2024 L series will see the Pro models of L7 and L8 also equipped with ad Max as standard. ad Max will cater to more households, and the capabilities of ad Max and ad Pro will continue to evolve.