LI AUTO(US:LI) Zhong Guo Qi Che Bao Wang·2025-06-09 01:31Core Insights - The "zero-kilometer used car" market has gained significant attention recently, with various forces influencing its trajectory after a period of rapid growth and regulatory ambiguity [2] - Li Auto has officially ceased supplying "zero-kilometer used cars" to Russia through parallel import channels, marking a strategic shift in its market approach [2][3] Group 1: Market Dynamics - The Russian automotive market has experienced significant upheaval due to the Ukraine conflict, leading to a surge in demand for Chinese vehicles as Western automakers withdraw [4][6] - In 2023, China's automobile exports to Russia increased by 340%, capturing 45% of the Russian import market, surpassing Japan for the first time [4] - The parallel export model, which allows for the sale of new cars as used vehicles without manufacturer authorization, has become a dominant trade route [4][5] Group 2: Li Auto's Strategy - Li Auto has established a network of 32 official dealerships in Russia through a partnership with Sinomach Auto, aiming to provide a robust after-sales service and quality assurance [3] - The company has introduced new models in Russia, priced between approximately 460,000 to 710,000 RMB, and offers extensive warranties [3] - Li Auto's decision to tighten parallel export channels aligns with its strategy to enhance brand reputation and market control [8][16] Group 3: Challenges and Risks - The parallel export model has led to price instability and a lack of after-sales support, damaging the brand image of Chinese vehicles in Russia [9][10] - Approximately 90% of parallel imported cars lack formal warranties, leading to consumer complaints and a decline in trust towards Chinese brands [9] - The Russian government has begun to restrict parallel imports, mandating that all vehicles must be imported through authorized dealers, which could further impact the market [10][12] Group 4: Future Outlook - The automotive landscape in Russia is shifting, with companies like Li Auto moving towards more regulated and official channels to stabilize their market presence [14][18] - There is a growing trend among Chinese automakers to limit parallel exports, focusing instead on establishing official sales channels to maintain pricing integrity and brand reputation [16][18] - The potential for growth in the second-hand car export market remains, as consumer acceptance of Chinese used cars is on the rise, suggesting a strategic pivot could be beneficial [19]