Lifetime warranty policies are an important measure for some new energy vehicle brands to win customers, but as the number of users grows, the pressure on car companies increases. Now, Li Auto is reportedly about to scrap the policy.
Li Auto will cancel its lifetime warranty policy for new car buyers by June 30, Chinese tech site mydrivers.com reported Tuesday, adding that Li Auto salespeople have started telling potential buyers to hurry up and order their cars before the deadline.
Li Auto is now giving a lifetime warranty to new purchasers, instead of the previous one that required an additional purchase.
On February 28, 2020, Li Auto first announced the option of a lifetime warranty policy that allows customers to purchase it at an additional cost of RMB 4,999 ($770).
Li ONE owners were able to purchase it for RMB 2,999 until March 10, 2020, after which it will revert to its original price.
The lifetime warranty includes a warranty on the vehicle, the power battery, drive motor, and motor controller, and an unlimited warranty period with no mileage limit.
However, as the user base grows, the potential pressure on car companies from this policy is increasing day by day. This is perhaps the main reason why Li Auto is considering canceling the policy.
On May 25, Li Auto released an updated version of the Li ONE with optimized self-driving capabilities as well as hardware specifications. Deliveries of this model have started on June 1.
The standard version is priced at RMB 338,000 in black, white, silver, and gray, just RMB 10,000 ($1560) higher than the current model's RMB 328,000.
The company also offers Baby Blue, Deep Green, and Tech Blue special editions for customers to choose from, and they are priced at RMB 348,000, which is RMB 10,000 higher than the standard version.
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(Source: Li Auto)