$Li Auto(LI.US)'s most important product is its sales channels, not the individual vehicle. Is Livis a good model? Of course, but the urgent problem it needs to solve is achieving the same level of popularity as Aito, not having a 10-point lead over competitors in the car itself. In fact, all automakers trying to create hit products this year will face the challenge of increasing channel utilization. Eliminating flagship stores in first-tier cities and embracing auto malls is a matter of going with the flow, but central areas in lower-tier cities cannot be missed.

In these regions with huge potential, the visibility and brand reputation boost from auto malls is extremely limited, so implementing segmented strategies in different regions is a top priority.

I believe the important reason Li Auto has this capability is that it has done sufficient educational groundwork in first-tier cities. Now, when it comes to penetrating lower-tier markets and bringing in the older generation, the resistance will be much smaller. The same theory applies to Nio and XPeng, but their average order value is still slightly lower than Li Auto's for now.