Research on the Profitability Model of Li Auto from the Value Chain Perspective

Abstract

Thanks to technological advancements and the strong support from the government for the new energy vehicle (NEV) industry, NEV companies have experienced rapid development in China. Li Auto Inc. (hereinafter referred to as “Li Auto”) is an emerging automobile manufacturing enterprise that adopts an omnichannel sales model, focuses on energy layout, builds a complete industrial chain, and engages in independent production. Li Auto emphasizes user experience and enters the market with mid-to-high-end vehicles. This paper, based on a value chain perspective, conducts an element analysis of the current profitability model of Li Auto and evaluates its effectiveness using related indicators from both internal and external value chains. The analysis identifies the shortcomings in its profitability model and provides optimization suggestions to address these issues.