"Radar Finance, Hongtu Production | Written by Meng Shuai | Edited by Shenhai"

"The 'three representatives' of China's new-energy vehicle (NEV) sector, known as 'Wei Xiaoli' (referring to NIO, XPeng, and Lixiang Auto), have recently seen their founders' friendship tested."

"In June 2020, He Xiaopeng posted a photo of himself with Li Bin and Li Xiang on Weibo, captioning it, 'Three bitter souls reminiscing about past hardships...' However, after more than four years, the once close trio now seems to be at odds."

"Recently, several auto executives, including Li Bin and He Xiaopeng, have expressed dissatisfaction with automakers unilaterally publishing weekly sales rankings. While some did not name names, it is widely believed that their criticisms were aimed at Lixiang Auto, which insists on publishing weekly sales figures. In response to this 'attack,' Li Xiang posted an image of the story of the man who tried to steal a bell by covering his ears on WeChat Moments, seemingly reacting to the joint boycott of Lixiang Auto's weekly rankings."

"Looking back, 'Wei Xiaoli' were virtually starting from the same starting line. Among the three, NIO had long been considered the leader. However, whether it's delivery volumes, revenue, profitability, or market value, Lixiang Auto now leads the other two by a significant margin."

"However, after achieving a series of impressive results last year, Lixiang Auto has seen its sales crown snatched by AITO for several consecutive months this year. In the first half of the year, Lixiang Auto temporarily stopped updating its weekly sales rankings. Nevertheless, after a few weeks, it resumed publishing the rankings. This move prompted some netizens to question whether Lixiang Auto only published the rankings when its sales performance was good."

"Analysts point out that while sales are important for automakers, they are not the sole metric for success or comprehensive strength. Sales can reflect a brand's popularity and market share, but they do not tell the whole story."

"Automakers should also consider factors such as product quality, technological innovation, customer satisfaction, brand loyalty, influence, reputation, sustainability, and social responsibility to enhance their overall competitiveness."

"Publishing weekly rankings sparks outrage, multiple automakers gang up on Lixiang Auto"

"In the NEV industry, sales to some extent represent a brand's popularity. Sales figures directly reflect market feedback, including consumer awareness, preferences, and purchase intent."

"Following industry norms, many automakers release their latest delivery data at the beginning of each month. However, Lixiang Auto goes a step further by publishing weekly sales rankings for NEV brands, which recently sparked a new round of controversy in the auto industry."

"At NIO's Innovation Technology Day on July 27, Li Bin appeared to take aim at Lixiang Auto. As NIO's founder, chairman, and CEO, Li Bin stated that monthly sales rankings are commonly disclosed information for public companies, part of financial transparency."

"Li Bin believes that monthly sales statistics are already intense competition, and that normal companies only disclose quarterly financial results. He went on to say, 'If we ever become number one, we will definitely never publish weekly rankings.'"

"Qin Lihong, considered NIO's second-in-command, was even more pointed, saying, 'I hope other companies don't include NIO in their weekly rankings.' He believes that tracking operations on a daily or weekly basis is appropriate, but hopes relevant authorities will oversee this matter."

"Qin emphasized that NIO does not forecast sales or release unaudited weekly sales data. Fewer than ten people within the company have access to weekly sales figures, and thus, market rumors about weekly sales data lack rigor. NIO has never authorized any third-party organization to publish weekly sales rankings on its behalf."

"Although Li Bin and Qin Lihong did not name Lixiang Auto specifically, many netizens believe they were alluding to it. According to Electric Intelligence, Lixiang Auto first began publishing weekly sales data in April 2023, considered a 'first' in the auto industry."

"However, Li Bin and Qin Lihong's comments did not seem to affect Lixiang Auto. On July 30, at noon, Lixiang Auto released the 30th week (July 22-28) sales rankings for NEV brands on its official Weibo account as usual."

"Subsequently, Ma Lin, NIO's Assistant Vice President of Brand and Communications, posted on Weibo, 'The top brass has spoken: No more low-level competition. Competing over weekly rankings is a form of low-level competition.'"

"Unlike Li Bin and Qin Lihong, who did not specifically name Li Xiang, Ma Lin directly addressed him on Weibo, 'Li Xiang, stop it already. The mission of Chinese automakers today is to achieve technological breakthroughs through research and development, isn't it? Let's charge together!' Ma Lin's post received support from Yang Xueliang, Senior Vice President of Geely Holding Group, who commented, 'I also oppose weekly rankings.'"

"As more and more players in the auto industry got involved, He Xiaopeng, Chairman of XPeng Motors, also joined the fray. At XPeng's AI Autonomous Driving Technology Conference on July 30, He Xiaopeng noted the significant differences between the U.S. and China's autonomous driving environments, with the former focusing more on end-to-end solutions."

"Radar Finance notes that in July 2023, XPeng executives had already questioned Lixiang Auto's weekly rankings. Huang Honglin, XPeng's General Manager of Product Marketing, had posted two ranking charts on WeChat Moments, captioning them, 'Please focus on official information; rumors are unreliable.' One of the charts was Lixiang Auto's weekly sales ranking."

"Huang also said, 'The above information about XPeng is false. Good things come to those who wait. Thanks for your attention! We don't need to show off our achievements; the auto industry is a long game where opportunism leads to failure. We focus on making solid products, quality, and supply, delivering high-quality vehicles to our customers.'"

"After several executives entered the fray, Lixiang Auto, which had been under attack, finally broke its silence. On the evening of July 30, Li Xiang posted an image of the story of the man who tried to steal a bell by covering his ears on WeChat Moments, along with a 'shh' emoji, seemingly reacting to the joint boycott of its weekly rankings."

"Once on the same starting line, their positions have now changed"

"With the rapid development of China's NEV industry in recent years, many Chinese automakers have come into the spotlight. Speaking of China's NEV development, it's hard not to mention the three representatives mentioned above: 'Wei Xiaoli.'"

"Back in the early 2000s, 26-year-old Li Bin founded Bitauto, filling a market gap and earning acclaim in the auto industry. Five years later, Li Xiang, who had previously founded PCPOP, launched Autohome, entering the same arena as Li Bin."

"In 2010, 36-year-old Li Bin rang the opening bell at the NYSE, making Bitauto China's first auto internet company to list overseas. In 2013, with Autohome's listing, 30-year-old Li Xiang also rang the bell at the NYSE."

"In 2014, 40-year-old Li Bin ventured into car manufacturing, giving birth to NIO. According to Tianyancha, as one of the earliest NEV startups, NIO was favored by investors, receiving funding from Temasek, Baidu Capital, Tencent, JD.com, and others. In 2018, NIO successfully listed on the NYSE, becoming the first Chinese NEV company to do so."

"In 2015, 34-year-old Li Xiang founded Lixiang Auto, entering the auto manufacturing industry. In October 2018, Lixiang Auto officially launched its first product, the smart electric mid-to-large SUV Lixiang ONE, which hit the market in April 2019. In July 2020, Lixiang Auto listed on NASDAQ, becoming the second NEV startup after NIO to go public in the U.S."

"He Xiaopeng, Chairman of XPeng Motors, another NEV startup, made his mark as the founder of UC Mobile (UC Browser). In June 2014, Alibaba acquired UC Mobile for over $4 billion."

"Financially secure, He Xiaopeng joined Alibaba after the acquisition, serving as President of Alibaba Mobile Business Group, Chairman of Alibaba Games, and President of Tudou. During this time, he proposed building cars within the Alibaba ecosystem but was rejected. Ultimately, he decided to build cars himself, investing in XPeng Motors, founded in 2014 by Xia Heng, He Tao, and Yang Chunlei. In August 2017, He Xiaopeng left Alibaba to become XPeng's Chairman. In August 2020, XPeng listed on the NYSE, becoming the third NEV startup after NIO and Lixiang Auto to go public in the U.S."

"At its peak, NIO's market value surpassed traditional giants Volkswagen and BYD, ranking third globally behind Tesla and Toyota. For a long time, NIO was often mentioned first among 'Wei Xiaoli.'"

"However, times have changed. The three companies, once on the same starting line, are no longer on the same level. In 2023, Lixiang Auto delivered 376,030 vehicles, becoming the first Chinese NEV startup to surpass 300,000 annual deliveries. In the same year, NIO and XPeng delivered 160,038 and 141,601 vehicles, respectively. Lixiang Auto's delivery performance was significantly ahead."

"Financially, Lixiang Auto also outperformed its peers. Last year, NIO and XPeng recorded revenues of RMB 55.618 billion and RMB 30.676 billion, respectively, while Lixiang Auto surpassed RMB 100 billion, reaching RMB 123.851 billion."

"While other startups struggled with losses, Lixiang Auto became the first to achieve profitability. Last year, NIO and XPeng reported net losses of RMB 20.72 billion and RMB 10.376 billion, respectively, while Lixiang Auto reported a net profit of RMB 11.809 billion, becoming the third profitable NEV company globally after Tesla and BYD."

"In terms of market value, as of the close on July 30 (EDT), NIO's market value was $9.225 billion, XPeng's was $7.513 billion, and Lixiang Auto's was $19.926 billion. Lixiang Auto's latest market value is more than double that of NIO and 2.65 times that of XPeng."

"Recently, Li Bin and He Xiaopeng have interacted frequently, even taking the same high-speed train on a business trip. He Xiaopeng even fulfilled his promise to sell cars at a discount, personally delivering an XPeng X9 to Li Bin. In contrast, Li Xiang seems more distant from the other two."

"An auto industry insider told Radar Finance that the relatively peaceful relationship between 'Wei Xiaoli' was maintained because they chose different market segments and positioning, forming differentiated competition strategies. For example, NIO focuses on the premium segment, Lixiang Auto on extended-range hybrids, and XPeng on the 100,000-200,000 yuan price range. This differentiation reduced direct competition."

"As the NEV market develops rapidly and competition intensifies, companies realize that a single product line cannot meet diverse market demands or maintain a leading position. Consequently, automakers are adjusting strategies, enriching their product portfolios to cover broader market segments and consumer groups."

"This product line expansion and price diversification enhance a brand's competitiveness and market share but also intensify competition. With overlapping product lines and similar price ranges, brands that once competed in different segments now face off for the same customers, involving aspects like product performance, price, service, brand image, and marketing strategies."

"Lixiang Auto once suspended weekly sales updates, sparking questions about concealing poor performance"

"As a NEV startup, Lixiang Auto's weekly sales rankings have been questioned for their authenticity and reliability. In response, Zhang Xiao, Head of Lixiang Auto's Product Line, explained, 'Every Tuesday, we publish sales rankings, and some people say the numbers are inflated. These people don't understand the auto industry's operations.'"

"Zhang noted that the auto industry has some of the most standardized statistics, from capacity planning to utilization, wholesale and retail sales, dealer inventory, compulsory insurance, imports, exports, and used car circulation. Each step is officially endorsed by the government and cannot be falsified."

"Notably, Lixiang Auto's weekly sales rankings were once suspended. Last May, Li Xiang tweeted, 'We've received complaints from peers, so we temporarily stopped publishing actual insurance-purchased data for the week of May 8-14. Some competitors couldn't bear it and started releasing fake data, so we released the first week's accurate data to correct the record.'"

"After a brief pause, Lixiang Auto resumed publishing weekly sales rankings. However, in March this year, the weekly rankings were again suspended. While this may be related to Li Xiang's call to 'lower sales expectations and desires, returning to healthy growth,' some believe the real reason was that AITO had overtaken Lixiang Auto in sales."

"In the first quarter of this year, AITO surpassed Lixiang Auto as the top NEV startup for several consecutive months. The highly anticipated Lixiang MEGA also struggled, with controversial design and lackluster sales."

In response to the aforementioned issues faced by the company, Li Xiang issued an internal letter to all employees on March 21st for a review. In this letter, Li Xiang pointed out the pacing issue with Lixiang MEGA, stating that the team mistakenly treated the from-0-to-1 stage (commercial validation period) of Lixiang MEGA as the from-1-to-10 stage (rapid development period) for operations.

At the same time, Li Xiang also candidly admitted that the team was overly focused on sales, saying, "From top to bottom, we have been overly concerned with sales and competition, letting desire surpass value, resulting in a significant decline in user value and operational efficiency, which were our strengths. Our pursuit of desire has turned us into people we once despised."

However, on May 7th, Lixiang Auto resumed updating its weekly sales ranking data, several weeks after its last update.

In the previously released 11th week (Mar. 11-17) sales ranking of new force brands, WENJIE took the lead with 8,600 units sold, surpassing Lixiang Auto's 7,000 units. However, in the resumed 18th week (Apr. 29-May 5) update, Lixiang regained the weekly sales crown from WENJIE, with 5,300 units sold compared to WENJIE's 4,800 units.

Based on this situation, some netizens questioned Lixiang Auto's decision to withhold updates when delivery performance was poor and resume them when performance improved. Comments under Lixiang Auto's Weibo post announcing the 18th week sales ranking included, "If you're not first next week, will you stop again?" and "Why resume posting? Isn't it better to keep a low profile and quietly make money?"

Despite various interpretations and speculations about Lixiang Auto's decision to resume weekly sales ranking updates, the company provided its own rationale: "After suspending the rankings, many customers would inquire about Lixiang Auto's sales performance from frontline staff when visiting stores. Sales figures are an important basis for many customers to make purchasing decisions, and frontline staff need real data to explain to customers."

Lixiang Auto also stated, "During the period when we suspended the rankings, various sales figures emerged in the market, leading to many related inquiries that we needed to address. Considering the consistency of external communication, we decided to resume publishing the sales rankings."

Interestingly, many automakers have their own motivations when it comes to announcing sales figures. For example, many automakers prefix numerous qualifiers when announcing that a particular product is the top seller in its category, leading to jokes like "with enough qualifiers, anyone can be number one."

Similarly, WENJIE, which was fiercely competing with Lixiang Auto for the sales crown in the first half of the year, also made adjustments when announcing its sales performance. When announcing April deliveries, WENJIE changed its categorization to include itself under the HarmonyOS Intelligent Driving system. Considering the overall deliveries of HarmonyOS Intelligent Driving, its 29,632 units delivered remained the top among new force brands in April, but this figure included 4,546 units of Zhide S7 in addition to WENJIE's deliveries.

Market observers believe that the automotive industry is also a field of fame and fortune, where various voices represent different interests. It is unrealistic to expect harmony within the industry, and the sector will continue to move forward amidst the clamor of diverse stakeholders.