Photo/Sun Tongtong (NBD)

On the evening of February 8th, the Li L7 of Li Auto was officially released. The new car is positioned as a mid- to large-sized SUV and comes with three trims - Air, Pro and Max, with prices set at 319,800 yuan, 339,800 yuan and 379,800 yuan respectively. 

It is reported that delivery of the Li L7 Pro and Li L7 Max will start on March 1st, and that of Li L7 Air will start in early April.

With the release of the Li L7, the L series of Li Auto has now expanded to 3 models (L9, L8, L7), and the L6 and L5 will be released in the future.

"Our product plan is very similar to that of the iPhone. Based on a set of effective technology platforms, we can launch iPhone 12 Pro Max, iPhone 12 Pro, iPhone 12 and iPhone 12 Mini at different prices to meet different consumer needs precisely," Li Xiang, founder, chairman and CEO of Li Auto, said at the conference call for Q1 of 2022.

It is worth noting that among the products currently on sale from Li Auto, the width, wheelbase and front and rear wheelbase of the Li L7 are completely identical to those of the Li L8, and the prices (the L8 priced at 359,800 yuan and 399,800 yuan) are relatively close, and industry insiders said that the two models might compete with each other.  

In response to the difference between the Li L7 and Li L8, Li Xiang made an analogy on social media: "the Li L8 is just like a 120-square-meter three-bedroom house, and Li L7 like a 120-square-meter two-bedroom house."

"Although the prices of the Li L8 and Li L7 are between 300,000 yuan and 400,000 yuan, the user needs are actually different. Most of the users of the Li L7 are three-person or quasi-three-person families, such as newly married or families with children, and most of the users of Li L8 are families with two children or elderly parents," Liu Jie, vice president of sales at Li Auto, told National Business Daily (NBD). 

Li Auto has also placed great hope on the Li L7. Li Xiang had previously said at the conference call that the most important work for Li Auto in 2023 would be the delivery of the Li L7. 

Liu Jie had told NBD that the monthly sales of the Li L7 would be between 10,000 and 15,000 units.

Tianfeng Securities believes that the Li L7 fills Li Auto's gap in the five-seat SUV product market. With the broadening of the target customer base and excellent product strength, Li Auto is expected to deliver 50,000~55,000 cars in the first quarter of 2023.

In 2023, Li Auto will further expand its distribution channels, with a goal of extending its reach to 50 more cities and opening 150 new store.