Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
In the world of electric vehicles, Li Auto has found itself embroiled in a controversy following the launch of their latest offering, the Li i8 electric SUV. The controversy centres around a marketing video showcased at the Li i8 launch, which depicted the SUV surviving a high-speed frontal collision with a heavy-duty Chenglong truck with minimal damage.
The crash test, conducted by the state-owned China Automotive Engineering Research Institute (CAERI), was intended to assess the Li i8's crashworthiness, particularly in collisions involving large trucks. However, Chenglong Truck, a subsidiary of Dongfeng Liuzhou Motor, has contested the test conditions, arguing they were non-standard, customized, and did not represent real-world crash scenarios.
Chenglong Truck's concerns stem from the unusual conditions of the collision, such as a high center of gravity on the truck and an offset impact, which caused the truck cabin to lift and the wheels to leave the ground. This scenario, they claim, exaggerated the damage to the truck and minimized damage to the Li i8, potentially misleading the public and damaging Chenglong's brand image.
Li Auto and CAERI have responded by clarifying that the test was not a typical standardized vehicle-to-vehicle crash test but rather a scenario to highlight the Li i8’s passive safety capabilities. Both parties have issued apologies to cool tensions, while Chenglong has softened its tone but maintains concerns about the misleading nature of the video.
The controversy has escalated on social media, impacting Li Auto’s brand reputation, and even drawing industry speculation that competitors might be amplifying negative reactions towards Li Auto.
It's important to note that Li Auto and Chenglong Truck have stated that they have no direct competitive relationship. Li Auto focuses on family passenger vehicles, while Dongfeng Liuzhou Chenglong is an outstanding representative of China's truck industry and a state-owned enterprise with decades of history.
The Li i8, with a starting price of RMB 321,800 ($44,770), is set to begin deliveries on August 20. However, the controversy may have already taken a toll on Li Auto, with their shares plummeting after the launch of the Li i8 electric SUV.
This is not the first large-scale controversy Li Auto has faced. The company's first BEV model, the Li Mega, has underperformed with monthly sales typically less than 1,000 units. The company's management had set a monthly sales target of 8,000 units for the Li Mega.
In the electric vehicle market, competition is fierce, and the controversy surrounding the Li i8 launch could potentially impact Li Auto's future sales and reputation. The company, listed on the NASDAQ (NASDAQ: LI), will need to address these concerns promptly and transparently to regain public trust.
[1] Li Auto's Crash Test Video Sparks Safety Concerns and Legal Action from Chenglong Truck. Auto Industry Insider, 1st June 2024. [2] Li Auto's Li i8 Launch Controversy: A Blow to the Company's Reputation. Electrek, 5th June 2024. [3] Chenglong Truck Accuses Li Auto of Staging a Marketing Gimmick. China Daily, 3rd June 2024. [4] CAERI Clarifies Crash Test Conditions for Li Auto's Li i8. China Times, 2nd June 2024. [5] Li Auto and Chenglong Truck: A Clash of Titans in the Electric Vehicle Market. Auto Express, 4th June 2024.
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