Li Auto’s i6 draws more youthful purchasers, shocking China’s electrical SUV market

What type of cars and truck can you get for around RMB 250,000 (USD 35,000)?

In today’s China’s electrical SUV market, that rate would net you a well-rounded car geared up with dual-chamber air suspension, a hot-and-cold mini refrigerator, and city-level assisted driving.

Chinese car manufacturer Li Auto set a brand-new criteria for five-seat SUVs with its Li i6. Within 3 days of launch, it brought in purchasers the brand name had actually hardly ever reached before: single young consumers and families without kids.

The i6 has actually brought brand-new energy to Li Auto’s display rooms. On launch day, test drives ran constantly, sales personnel processed a constant circulation of orders, and shipment times on the carmaker’s app rapidly encompassed 2 months.

“The clients coming in for the i6 are entirely various from those for the L series or the Li i8,” one sales representative informed 36Kr“They are more youthful, make choices quicker, and stroll in completely prepared. The majority of them are comparing it to Tesla and Xiaomi.”

At the very same occasion, Li Auto revealed its very first star ambassador, Jackson Yee, signifying an effort to rearrange itself with a more youthful audience.

Early indications recommend the relocation is settling. In Beijing, a number of salesmen informed 36Kr they had actually currently secured 10 orders each, while in Shenzhen the numbers were even greater.

“Before the i6, the Li i8 was our primary focus, however sales pressure was heavy, with local workplaces appointing weekly targets of 20 orders per shop,” a Beijing-based sales representative stated. “Interest in the i6 is totally various. Our test drives were completely reserved even before the launch occasion.”

For days after release, display room test automobiles seldom sat idle. Since publication, Li Auto’s app noted projected shipment times of 9– 11 weeks.

Sales personnel kept in mind that the i6 has a really various purchaser profile. A much bigger share of clients are child-free homes or single purchasers, and they tend to move rapidly from test drive to buy.

“Many desire shipment this year to gain from tax breaks,” one sales representative stated. “Almost all of them have actually likewise taken a look at the Tesla Model Y and Xiaomi YU7. Some even changed after putting deposits with Xiaomi.”

Why is the i6 drawing in attention versus developed bestsellers? For a lot of sales personnel, the response is cost and worth.

The i6 is priced at RMB 249,800 (USD 34,972). Up until October 31, purchasers get RMB 10,000 (USD 1,400) off, in addition to complimentary upgrades such as dual-chamber air suspension, a hot-and-cold refrigerator, and soft-close doors.

By contrast, the Tesla Model Y begins at RMB 263,500 (USD 36,890) with less functions. Xiaomi’s YU7 does not use air suspension up until the Pro variation at RMB 279,900 (USD 39,186), while self-close doors just appear on limit cut at RMB 329,900 (USD 46,186).

“The i6 likewise features an electrical breathtaking sunshade and manual side window drapes,” numerous salesmen kept in mind. “Tesla and Xiaomi are understood for modern, distinctive functions, while Li Auto focuses more on convenience.”

More youthful purchasers, who are typically more acquainted with electrical car tradeoffs, see the i6’s concentrate on convenience and usefulness as a differentiator.

Li Auto has actually traditionally placed itself as a household brand name, and the majority of its previous designs have actually shown that.

In July, it introduced the six-seat Li i8 in 3 trims based upon assisted driving and home entertainment functions. Simply a week later on, Li Auto ditched the division and made helped driving basic throughout a single variation.

Nevertheless, sales were weak. By September, weekly shipments balanced about 1,000 systems, and conversion rates stayed low.

The battle is partially due to strong competitors in the six-seat SUV section.

The i8 begins at RMB 339,800 (USD 47,572). By contrast, Nio’s Onvo L90 is priced from RMB 265,800 (USD 37,212), or RMB 179,800 (USD 25,172) under a battery leasing strategy, and offers more than 10,000 systems a month. Nio’s ES8 starts at RMB 406,800 (USD 56,952), or RMB 299,800 (USD 41,972) with leasing, providing comparable functions. Aito’s M8 and Zeekr’s 9X have actually both gone beyond 20,000 regular monthly shipments, while Tesla has actually included a six-seat Model YL to its lineup.

With competitors integrating abundant function sets and strong brand name pull, the i8’s placing looks less engaging.

The five-seat SUV sector is likewise crowded. Tesla’s Model Y has actually offered more than 400,000 systems each year in China for a number of years, and Xiaomi’s YU7 drew 200,000 preorders within minutes of launch. Other brand names, consisting of Aito, Luxeed, IM Motors, and Avatr, have actually tried to enter this area with little success.

Why, then, is Li Auto completing here?

A Li Auto expert indicated the Li L6 as a turning point. Research study revealed that much of its owners were songs and child-free families.

“We studied these users in depth,” the expert stated. “When we established the i6, we made targeted changes. While air suspension in the L series highlights convenience, the i6 is tuned more for managing, which appeals to more youthful purchasers.”

Sales personnel likewise kept in mind that the higher-end L series has actually developed reliability, providing Li Auto an edge amongst brand-new demographics.

Simply put, the i6 integrates brand name strength with available worth. Xiaomi’s YU7 appeals through style, while the i6 highlights convenience. Together, these qualities– brand name track record, style, and convenience– are forming car-buying choices amongst more youthful customers.

From working with Yee as ambassador to the i6’s strong display room reception, Li Auto is making a clear push to move past its “daddy automobile” label. With development slowing down and its consumer base constricting, the business requires a brand-new development motorist, and the i6 is placed to fill that function.

KrASIA Connection includes equated and adjusted material that was initially released by 36Kr. This short article was composed by Xu Caiyu for 36Kr.