Li Xiang refuted the statement that "it will never scale if it is only a home user, and it will always be a small business."In Li Xiang's view, choice is more important than hard work. The family car market is worth trillions, and there is no need to choose the more niche markets such as RVs, pickup trucks, and sports cars. Li Xiang said that China’s entire RV market in one year is not as good as Li Auto’s best day sales in 2023.
By 2030, if China's home user market with a price of more than 200,000 yuan accounts for 35%, it will reach one trillion yuan. If it wins some overseas markets, it will exceed the iPhone's global peak revenue.
The following is the full text of Li Xiang:
In the past few years, [experts] have continued to educate and remind me, how should I do strategy? The RV market is pretty good. If you use a range extender and modify it, it will become an integrated RV... Do you know how big the entire RV market in China is in a year? Not as good as our best day sales in 2023.
Why don’t you do pickup trucks? Why don’t you make a sports car? Why don’t you make sports cars for young people? Why don’t you make cars for the elderly? Why don’t you make transport vehicles? Why don’t you do government procurement of vehicles? You can't scale by just being a home user. You will always be a small business.
The knowledge of seeking truth from facts is really a fatal thing in strategic choices. Not knowing that you don't know is the scariest thing.
By 2030, if China's home user market with a price of more than 200,000 yuan accounts for 35%, it will reach one trillion yuan. If it wins some overseas markets, it will exceed the iPhone's global peak revenue.
Choice is more important than effort, because good choices must be self-driven. Bad choices are often self-motivated in the process, and the result is comprehensive damage without blind spots.