Chinese automaker Li Auto is set to lose another senior executive, with local media linking the departure partly to weaker-than-expected performance of its Li i8 electric SUV since launch.
Zhang Xiao, president of Li Auto’s second product line, will leave the company in the near term, local outlet LatePost reported on Tuesday. Zhang oversaw several models, including the Li i8, Li L7 and Li L8.
LatePost said Zhang’s departure may be connected to the underwhelming market performance of the Li i8, Li Auto’s first entry into the pure-electric SUV segment. Despite the model’s launch being delayed by a year, sales failed to meet internal expectations, the report said. From mid-2023 to the first half of 2024, Zhang led efforts to refine the Li i8’s styling and optimize its product design.
Li Auto reorganised its product development structure in April 2024, dividing its portfolio into three product lines by price range. The first line, covering vehicles priced above RMB 400,000 ($57,030), includes the Li Mega electric MPV and the Li L9 SUV and is led by Tang Jing. The second line, priced between RMB 300,000 and RMB 400,000, includes the Li i8, Li L7 and Li L8 and was managed by Zhang. A third line, focused on models priced below RMB 300,000 such as the Li L6 and Li i6, is overseen by Li Xinyang.
The Li i8 was launched on July 29 as Li Auto’s second battery electric vehicle following the Li Mega MPV. The company relaunched the model on Aug. 5, reducing available configurations from three to one and cutting its price after a weak initial market response.
LatePost said that personnel changes within Li Auto’s product lines are not the company’s core challenge. With competition in China’s electric vehicle market intensifying, Li Auto’s more pressing task is to reassess its product strategy and clarify its roadmap and positioning in the coming years, the report said.
Shortly after the LatePost report, domestic outlet 21jingji reported that Zhang resigned on his own initiative and that the move was unrelated to Li Auto’s business performance. Citing multiple sources, the report said Zhang may start his own business after leaving, and that the second product line will be merged into the first product line under Tang’s leadership.