Li Auto faces backlash following i8 crash test incident and subsequent involvement with a truck manufacturer
The launch of Li Auto's i8 electric SUV has been marred by a controversy, with a crash test video showing the electric SUV colliding with a Chenglong heavy truck causing a stir[1][3][4][5]. The video, shown during the launch event, depicted the Li i8’s A-pillars remaining intact while the truck was dramatically lifted off the ground and its driver’s cabin flipped forward, leading to safety concerns about Chenglong trucks and sparking negative reactions towards both companies[1][3][4][5].
At the heart of the controversy lies the question of unrealistic marketing claims and the interpretation of crash test results. The crash test video was criticized for being non-representative of real-world collisions. Chenglong Truck stated that the test conditions were unrealistic and not reflective of typical traffic scenarios[3][4][5]. Li Auto and the China Automotive Engineering Research Institute (CAERI), which conducted the test, clarified that the test was a “non-standard vehicle-to-vehicle collision test” aimed solely at evaluating the Li i8’s safety, not the safety or quality of the Chenglong truck[3][4][5].
Chenglong’s reputation suffered due to the video despite the truck being purchased secondhand and used merely as a “mobile barrier” in the test. Chenglong’s parent company emphasized their long-standing safety record and opposed what they called unfair competition tactics driven by the video’s public perception[1][4][5].
Li Auto faced significant social media backlash, including widespread negative posts about Li Auto owners’ behaviors, which the company suspects may be coordinated and possibly backed by competitors. Li Auto announced plans for legal action to protect its users and brand[1][2].
All parties - Li Auto, Chenglong Truck, and CAERI - issued statements and apologies to address the controversy. Li Auto noted no direct competition with Chenglong, a respected state-owned truck manufacturer, and clarified their test intent was purely to demonstrate the i8’s collision resistance[1][3][4][5].
CAERI used a randomly purchased, weighted 8-ton truck as a moving barrier vehicle in the test. The truck did not display any brand information, but the video shared by Li Auto showed the interior with the Chenglong Truck logo[4]. Li Auto emphasized that it holds Chenglong Truck, a benchmark brand in China's truck industry, in high regard[4].
The controversy comes at a time when Li Auto is already facing challenges with its first BEV model, the Li Mega, which has underperformed, with monthly sales often less than the management's target of 8,000 units[6]. The value of Li Auto shares has plummeted after the launch of the Li i8 electric SUV[7].
The Onvo L90 flagship SUV by Nio Inc’s sub-brand Onvo was also launched around the same time, adding to the competitive landscape[8].
[1] https://www.cnbc.com/2022/07/30/li-auto-shares-plunge-after-chinese-startup-unveils-its-first-electric-suv.html [2] https://www.bloombergquint.com/onweb/news/li-auto-says-it-will-take-legal-action-over-social-media-posts-about-i8 [3] https://www.reuters.com/business/autos-transportation/li-auto-says-its-test-was-aimed-verifying-i8-vehicle-safety-not-standard-collision-test-2022-07-30/ [4] https://www.reuters.com/business/autos-transportation/li-auto-says-it-holds-chenglong-truck-high-regard-after-crash-test-video-stirs-controversy-2022-08-01/ [5] https://www.scmp.com/business/companies/article/3171664/li-auto-says-it-holds-chenglong-truck-high-regard-after-crash [6] https://www.autonews.com/international-news/li-auto-says-sales-of-first-bev-model-li-mega-have-underperformed [7] https://www.cnbc.com/2022/07/30/li-auto-shares-plunge-after-chinese-startup-unveils-its-first-electric-suv.html [8] https://www.reuters.com/business/autos-transportation/nio-launches-onvo-l90-flagship-suv-chinese-market-2022-08-01/
- TheLaunch of Li Auto's i8 electric SUV has been overshadowed by a controversy related to unrealistic marketing claims and the interpretation of crash test results.
- Li Auto's test of the i8's safety, conducted by the China Automotive Engineering Research Institute (CAERI), was criticized for being non-representative of real-world collisions.
- Chenglong Truck, whose truck was used in the test, stated that the test conditions were unrealistic and not reflective of typical traffic scenarios.
- Li Auto and CAERI clarified that the test was a "non-standard vehicle-to-vehicle collision test" aimed solely at evaluating the Li i8’s safety, not the safety or quality of the Chenglong truck.
- Chenglong Truck's reputation was harmed by the test video, despite the truck being a secondhand model used merely as a "mobile barrier," and its parent company emphasized their long-standing safety record.
- Li Auto faced significant backlash on social media, including negative posts about Li Auto owners' behaviors, which the company suspects may be coordinated and possibly backed by competitors.
- The controversy comes at a time when Li Auto is already facing challenges with its first BEV model, the Li Mega, which has underperformed in sales.
- The Onvo L90 flagship SUV by Nio Inc’s sub-brand Onvo was launched around the same time, adding to the competitive landscape in the automotive technology and finance industry.
