(LI) Li Auto Inc. Business Model Canvas Research

Li Auto Inc. partners with retail property operators to place stores in malls and other high-footfall sites, helping it reach urban premium buyers without building a dealer-heavy network. By the end of 2025, its direct-sales footprint was in the hundreds of stores, and each prime location supports both brand visibility and lower channel complexity.

• Prime malls drive premium traffic
• Direct stores cut dealer layers
• Urban sites lift brand reach

Charging and energy partners extend Li Auto Inc.'s usable charging footprint beyond its own sites, which matters as the lineup expands beyond long-range SUVs. By giving owners access to third-party public chargers, these partners make daily use easier and help cut range anxiety, especially on longer trips and in cities where home charging is limited.

• Expand access beyond Company sites
• Improve trip convenience
• Reduce range anxiety

Li Auto Inc. sells directly to customers, not through franchise dealers, so sales teams, delivery centers, and app-based workflows stay under one pricing and service model. In 2025 Q1, the company delivered 92,864 vehicles, showing how its owned retail-and-delivery setup scales with demand while keeping customer experience and pricing control tight.

• Direct sales, no dealer markups
• Owned delivery and service flow
• App tools support the handoff

Li Auto’s after-sales service covers maintenance, repair, and warranty support through its service network, which is central to premium ownership. A strong post-sale setup improves repeat purchases and lowers churn; Li Auto had 500+ service and delivery touchpoints in China, helping it keep service close to owners.

• Supports warranty and repair work
• Builds trust after delivery
• Helps premium brand loyalty

For premium EV buyers, fast service can matter as much as range or cabin quality.

Li Auto’s app, online sales stack, and connected-car platform turn every delivery, service visit, and in-app touchpoint into first-party data from a fleet that topped 500,000 cumulative deliveries in 2024. That data helps Li Auto personalize offers, speed up service, and refine product features, while keeping customer relationships cheaper to manage than a fully offline model.

• First-party data from app and car usage
• Supports personalization and service
• Improves product iteration and CRM efficiency

Li Auto Inc.'s cash and balance sheet strength are a key resource because the business needs heavy funding for R&D, plant capex, and charging and sales network build-out. As of 2024 year-end, it held RMB 112.8 billion in cash, short-term investments, and time deposits, giving it room to fund long EV product cycles without depending on near-term outside capital.

• RMB 112.8 billion cash and deposits
• Funds R&D and capex
• Supports network expansion and scale-up

That liquidity matters in a capital-intensive auto market, where model launches, battery tech, and production ramp-ups can take years. Strong cash reserves also improve pricing and execution flexibility if demand slows or competition tightens.

Li Auto Inc. uses smart cockpit and assisted driving to add a software premium: natural voice control, advanced driver-assist features, and OTA updates keep features fresh after sale. By year-end 2024, Li Auto had delivered 500,508 vehicles, so each update can reach a large installed base and help support repeat buying.

• Voice and cockpit software lift daily use.
• OTA updates extend product life after sale.
• Assisted driving supports a higher price.

Li Auto Inc. ties sales, delivery, service, and app-based connected features into one brand, so the customer keeps one point of contact from order to after-sales. That cuts the friction seen in fragmented auto ownership and supports tighter control of the journey; in FY2025, this model still backed one of China’s most scaled EV retail-and-service networks.

• One brand, one journey
• Less handoff, fewer delays
• More control after delivery

Li Auto Inc.'s after-sales service keeps owners tied to the brand through maintenance, repair, and warranty support, which matters in premium vehicles where service quality strongly shapes loyalty and repeat sales. In 2025, this lever is still central because each service visit is a direct touchpoint that can protect retention and future replacement demand.

• Maintenance and warranty build repeat contact.
• Service quality drives premium-brand loyalty.
• After-sales support helps repeat sales.

Li Auto Inc. uses OTA software updates and remote diagnostics to keep vehicles improving after sale, so the customer tie stays active and digital. With 500,508 deliveries in 2024, this model lets Li Auto support a large fleet with fewer shop visits and faster fixes.

• OTA keeps features current
• Remote support cuts visits
• Digital service raises retention

Li Auto Inc. delivery centers are the last in-store step in the purchase journey: they handle handover, first-time setup, and a clean start to ownership. With Li Auto Inc. delivering 500,508 vehicles in 2024, these physical touchpoints matter at scale and help keep the brand's premium feel consistent across a fast-growing base.

• Handle vehicle handover
• Set up the car on delivery
• Support premium ownership experience
• Link online purchase to offline use

Li Auto Inc.’s more than 500 service centers are its main channel for maintenance and repairs, and they are key to warranty execution and customer trust. As the fleet grows, this after-sales network keeps the relationship alive after the initial sale and helps protect repeat purchases.

• Maintenance and repair channel
• Warranty support and trust
• Extends post-sale customer ties
• Supports a 500+ center network

Premium MPV buyers want lounge-like comfort, flexible seats, and easy family travel. Li Auto can serve this niche alongside its SUV lineup, widening its premium family pool after delivering 500,508 vehicles in 2024, showing strong demand for higher-end multi-seat models.

• Comfort-first premium families
• Flexible seating drives demand
• SUV plus MPV broadens reach

Tech-forward EV switchers are former ICE buyers moving into intelligent EVs, and Li Auto converts them with strong software, connectivity, and driver-assist features. In 2024, Li Auto delivered 500,508 vehicles, showing how well its digital-first in-car experience fits this segment.

• Software and connectivity matter most
• Driver-assist helps drive conversion
• Digital UX supports repeat purchase

Li Auto Inc. keeps sales, marketing, and retail costs inside SG&A because it runs direct stores, hires its own staff, and funds promotions and customer acquisition itself. Urban showroom coverage raises rent and payroll overhead, so this model costs more than dealer outsourcing but gives Li Auto tighter control over the customer experience.

• Direct retail lifts SG&A.
• Stores and staff add fixed costs.
• Showrooms raise urban overhead.

Li Auto Inc. must fund after-sales service and warranty reserves because every delivered vehicle can create future repair and claim costs; with cumulative deliveries topping 500,000 vehicles, these costs scale with the installed base. Logistics also stays heavy, covering finished-vehicle moves, parts distribution, and delivery to users and service sites, so per-unit cost pressure rises as the fleet grows.

• Warranty reserves protect future repair costs.
• Logistics covers cars, parts, and delivery.
• More vehicles mean higher service spend.

Li Auto Inc.’s parts and accessories stream is tied to its growing installed base: it delivered 500,508 vehicles in 2024 and reported RMB144.5 billion in revenue, which helps create repeat demand for replacement parts, add-ons, and upgrades during ownership and service visits. These are lower-ticket sales, but they can recur after the first vehicle sale.

• 500,508 vehicles delivered in 2024
• RMB144.5 billion 2024 revenue
• Recurring sales come via service visits
• Mix includes parts, accessories, upgrades

Li Auto Inc.'s other automotive-related income, such as financing, insurance, and service-package fees, stays smaller than vehicle sales but adds recurring cash flow. This revenue mix helps diversify income beyond new-car transactions and smooths earnings when deliveries slow.

• Financing and insurance fees
• Service-package and add-on income
• Smaller than vehicle sales
• Diversifies revenue mix