Li Auto has established a first-tier division dedicated to overseas market expansion, signaling a renewed commitment to its international growth strategy, as reported by 36kr. This new division, led by Wang Jin, who has been with the company for over a year, operates under Zou Liangjun, the senior vice president of sales and service.
Wang, who previously worked with Huawei and oversaw sales and services in Chile, will be pivotal in steering Li Autoâs international initiatives. Currently, the division has a small team and has yet to make significant moves in the overseas market.
Initially, Li Auto planned to expand into the Middle East and Central Asia, including the UAE and Saudi Arabia, using a direct sales model akin to its operations in China. In February, Zou stated that the company aimed to start deliveries abroad in the fourth quarter, beginning with the Li L9 and Li L7 models. However, the company has since revised its strategy, shelving plans for direct store openings overseas.
Concerns have been raised that local store openings could disrupt relationships with existing channel partners and push them towards competitors. As a result, Li Auto is focusing on recruiting local dealers for its expansion efforts. The challenge of implementing a direct sales system is significant, prompting the company to prioritize regions where it has already validated the market.
Moreover, Li Auto is developing specialized designs for overseas models, identifying necessary adaptations for the Middle Eastern market earlier this year. The company is also considering Latin America as a potential overseas market, leveraging Wang’s familiarity with the region from his previous experience.
Unlike its local competitors Nio, Xpeng, and Zeekr, which are actively pursuing international growth, Li Auto has been slower to enter overseas markets. Over the past few years, the company’s approach has evolved several times. Founder, chairman, and CEO Li Xiang indicated in 2020 that Li Auto would enter international markets, but later revised that timeline, suggesting no overseas expansion before 2025.
Source: CNEVPOST