Li Auto CEO Proudly Champions Use of Domestic Chinese Suppliers
Li Xiang, CEO of Li Auto, took to Weibo in the late hours of May 25, 2023, to express his pride in the company’s extensive use of domestic Chinese suppliers. This announcement comes amidst criticism for the company’s heavy reliance on local suppliers. However, Li Xiang is unphased by the criticism, stating, “Consumers dare to buy Chinese brand cars, so we dare to boldly use Chinese local supply chain enterprises.”
Li Auto‘s collaboration with domestic suppliers spans various components of their vehicles, including domestically produced chips by Horizon and Xinzhi, memory storage by Changxin, lidar by Hesai, batteries by CATL and Xingwangda, air suspension by Konghui and Baolong, brake systems by Bertli, and HUD by Future Black Technology. These partnerships represent a strong commitment to joint research and development, verification and production, and in-depth involvement in each stage and detail.
The domestication rate of chips in Li Auto‘s L series has exceeded 25%, making it one of the car models with the highest chip domestication rate. This achievement is the result of significant investments in research and development, as well as experimental costs. Li Xiang is proud of this feat and is not afraid of criticism in this regard.
Li Xiang also noted that the high-pressure fuel tank of the Li ONE was developed by a South Korean company, as there were no domestic suppliers capable of developing such a component at the time. He then revealed that through joint research and development, Li Auto supported a domestic company in successfully developing a high-pressure fuel tank, with the manufacturing plant located next to Li Auto‘s Changzhou factory.
SEE ALSO: Li Auto’s Q1 Revenue Increases by Nearly 100% YoY, Delivery Target of 30,000 EVs Set for June
On May 10, 2023, Li Auto announced its Q1 2023 financial results, showcasing a total revenue of 2.67 billion USD, a year-on-year increase of 96.5%. The company reported positive operating profit and net profit. It also hit a new record in free cash flow, reaching 951 million USD.
Li Auto stated that they achieved their best single-quarter delivery results in Q1. Thanks to customer recognition of the Li L8 and Li L9, and strong order volume and rapid production ramp-up of the Li L7, Li Auto‘s single-quarter deliveries reached 52,584 units, a year-on-year increase of 65.8%. This performance ranks them among the top three in sales volume of new energy brands priced above 200,000 RMB in China, with a market share of approximately 11%, far exceeding other new power brands.