LI AUTO(US:LI) Hua Er Jie Jian Wen·2025-08-14 05:08Core Viewpoint - Li Auto is restructuring its sales and service system to enhance operational efficiency and support frontline sales personnel, moving away from the previously implemented five-region sales strategy [3][4][6]. Group 1: Organizational Changes - Li Auto has merged its five sales regions into a centralized "Sales Department" managed directly from headquarters, now overseeing 23 regions [2][3]. - The company has established two new departments within the sales and service sector: marketing and sales operations, to better allocate resources [2][3]. - The return to a "provincial leader system" aims to improve user operations centered around stores, addressing internal conflicts that arose from the previous structure [3][4]. Group 2: Performance Challenges - Li Auto's sales volume has declined by 24% in the first half of the year, ending a 14-month streak of year-on-year growth, and has been surpassed by competitors [6]. - The market share of Li Auto's high-end models (L7/L8/L9) has decreased from 32% to 26% compared to the previous year, with the entry-level L6 model now accounting for over 40% of sales [6]. - The company's net profit fell by 81.7% quarter-on-quarter in the first quarter, highlighting the urgent need for new growth points in the pure electric vehicle market [6]. Group 3: Strategic Adjustments - Li Auto is shifting from a performance-based management system (PBC) to an Objectives and Key Results (OKR) model, which is more suited for innovation and exploration [7]. - This change is intended to foster a more adaptive organization capable of navigating the uncertainties in technology and AI-driven markets [7]. - The company aims to leverage its i-series and AI strategies to regain competitive advantage and drive growth in the pure electric vehicle segment [6][8].