File Photo/NBD

Li Auto, a prominent player in China's new energy vehicle (NEV) market, has recently taken a strategic step to streamline its operations by merging its retail and delivery departments into a unified sales division. This consolidation aims to align goals and facilitate a more cohesive approach to boosting overall sales volumes.

Previously, Li Auto operated with separate teams managing sales and delivery, a model also adopted by other NEV companies such as Tesla and NIO. However, this structure occasionally led to friction due to differing performance metrics and incentives between the two teams. The sales team focused on securing orders, while the delivery team's success hinged on the actual handover of vehicles to customers. This separation could result in conflicts, especially when customers delayed taking delivery, affecting the delivery team's performance.

The merger is expected to enhance internal communication and coordination, thereby maximizing synergies and potentially driving sales growth for Li Auto. This move comes amid a broader trend within the industry, where new energy automakers are reevaluating and adjusting their marketing strategies to adapt to a more competitive landscape and evolving consumer demands.

Other companies, such as Leap Motor and XPeng, are also undergoing changes to their marketing departments. Leap Motor has consolidated its sales departments, while XPeng has seen personnel shifts in key roles, including the appointment of a new marketing vice president with a background in smartphone marketing.

As the NEV market matures and competition intensifies, these strategic realignments are indicative of the industry's ongoing efforts to refine marketing and sales operations, ultimately aiming to capture larger market shares and enhance brand presence. Li Auto's integration of its retail and delivery functions is a testament to the company's commitment to innovation and operational efficiency in pursuit of sustained growth and success.