Chinese electric vehicle (EV) manufacturer Li Auto is introducing new organizational changes in a bid to transform the company. CEO Li Xiang recently spoke at the China Electric Vehicle 100 Forum (2023), outlining the difficulties of the automobile industry and emphasizing the need for Li Auto to become four different enterprise types at the same time, with capabilities in software applications, industrial manufacturing, service networks, and platform research and development.
Li Auto has already achieved full-stack self-development for their extended-range electric system, intelligent cockpit system, and intelligent driving system. However, Li Xiang believes that for the company to truly flourish, stronger organizational capabilities are necessary. As a result, Li Auto will be introducing Huawei‘s IPD matrix organizational process and organizational management methods.
Li Xiang explained that this organizational change will help Li Auto achieve overall planning, solve collaboration issues, and address the logistical dilemma of products, supply chains, and delivery. In addition, the company aims to cultivate stronger business acumen in its employees, who will be able to consider both profit-making and cost control throughout the process. These changes will take time to implement fully, and Li Xiang estimates that it may take until at least 2025 before they see the full results.
Li Auto has already made significant strides in the EV industry, breaking the record for the fastest delivery of 300,000 vehicles by a new car maker in just 39 months. The company is also challenging the entire luxury SUV market with a price range of RMB 300,000 to 500,000 (USD 43,000 to 72,330) in an attempt to win 20% of the market share.
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Furthermore,Li Auto has made adjustments to its processes with the arrival of artificial intelligence (AI). The company previously relied on many outsourcing companies for data labeling, but it has now introduced automatic calibration through AI.
Li Auto’s ambitious plans and recent success have made it one of the most exciting companies in the EV industry to keep an eye on. With these new organizational changes, the company hopes to further establish itself as a leader in the market.