Core Viewpoint - Li Auto is undergoing a significant restructuring of its sales system, reverting from the "Five Battle Zones" model back to a provincial direct management system, indicating challenges in the previous structure's effectiveness [1][4][6] Group 1: Sales System Changes - The "Five Battle Zones" system, implemented in March 2023, is being dismantled after less than six months due to its inability to meet the company's operational needs [2][4] - Li Auto has established two new departments to support the sales system: a marketing department led by Feng Wei and a sales service operation department led by Ma Donghui [1][2] - The previous sales structure included 26 sales provinces, with each province independently setting sales targets and strategies [1] Group 2: Sales Performance and Market Response - Li Auto's second pure electric vehicle, the i8, launched in late July 2023, faced challenges with sales pressure and negative market response, leading to adjustments in vehicle configurations and pricing [2][3] - As of mid-August 2023, Li Auto had not disclosed specific order data for the i8, and sales personnel reported significant pressure to meet sales targets [2][3] - The company set a sales target of 700,000 units by 2025, with 600,000 units expected to be range-extended vehicles; however, as of July 2023, only 234,700 units had been sold, achieving 33% of the target [2] Group 3: Competitive Landscape - Li Auto's market share is being challenged by competitors like Leap Motor, which has adopted a "half-price Li Auto" strategy, and AITO's M9, which has outperformed Li Auto's L series in monthly sales [3] - The competitive pressure has led to a dilution of Li Auto's customer base, as other brands attract high-end users [3] Group 4: Historical Context and Future Outlook - The previous provincial direct management system, which led to a significant increase in sales (182% year-on-year growth in 2023), is being reinstated to enhance operational efficiency [5][6] - The return to a provincial direct management model reflects a strategic shift back to a structure that previously enabled rapid growth and market penetration [6]