- Li Auto has introduced a store profit-sharing program to incentivize sales outlet managers and address intensifying domestic market competition.
- The new store strategy emphasizes aligning core resources with managers possessing strong operational capabilities to enhance individual store profitability.
Li Auto (NASDAQ: LI, HKG: 2015) is undertaking a major restructuring of its retail network, aiming to transform its sales team into one of its core competitive strengths.
Following last year's sales decline, the Chinese new energy vehicle (NEV) maker has introduced a store profit-sharing scheme to motivate sales managers and counter intensifying domestic market competition, according to a Friday report by local media outlet Leiphone.
Li Auto internally announced the launch of its "Store Partner Program" on February 27. The initiative does not shift toward a traditional franchise model but instead grants greater operational autonomy to select core store managers, allowing them to directly participate in store profit sharing, the report cited sources as saying.
Under the new mechanism, store managers will transition from purely sales-focused roles to store general managers accountable for overall operational performance.
This management restructuring underscores Li Auto's efficiency-focused strategy amid challenging market conditions.
Li Auto's 2025 deliveries declined 18.8% year-on-year to about 406,000 units. In January 2026, its deliveries totaled just 27,668 units, marking a 7.55% year-on-year decline and a 37.47% month-on-month drop — the lowest level since March 2025.
Last month, the company began evaluating and closing underperforming stores established during its earlier aggressive expansion phase, redirecting resources toward high-potential commercial districts.
Facing intensifying product homogenization in the EV market, Li Auto is attempting to break the deadlock by shifting the focus to channel operational efficiency.
The new store strategy emphasizes deeply aligning core resources with managers possessing strong operational capabilities to enhance per-store profitability, Leiphone cited sources as saying.
This retail system overhaul also paves the way for Li Auto's upcoming new product cycle.
Li Auto plans to launch multiple new models intensively in 2026 and has set an aggressive sales target of about 550,000 units, representing about 40% year-on-year growth, according to previous media reports.
