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A NIO Inc. (NYSE:NIO) executive has reportedly requested that Li Auto Inc.(NASDAQ:LI) cease its practice of publishing weekly sales rankings, arguing that it constitutes a trivial competition that disrupts the operations of other companies.
In a Weibo post, NIO’s assistant vice president of branding and communications, Ma Lin, stated that the Chinese government has urged industries to avoid engaging in low-level “involution,” reported CnEV Post.
“Involution” is a term that has gained popularity in China in recent years, commonly referring to intense competition among stakeholders that ultimately benefits no one.
Ma Lin stated that publishing weekly sales rankings is essentially equivalent to low-level involution, the report noted.
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He urged Li Xiang, the founder, chairman, and CEO of Li Auto, to instruct his team to cease this practice.
Ma Lin noted that while automakers release audited delivery figures each month, reflecting the business situation at that time, weekly rankings can disrupt normal business operations.
In his Weibo post, Lin included four images: one was a screenshot of a media report showing China’s Politburo urging industries to enhance self-discipline and avoid “involutional” competition, while the other three images related to NIO’s July 27 Nio IN event, where advancements in the Shenji NX9031 chip and SkyOS were announced.
Since late March 2023, Li Auto has been publishing weekly sales rankings every Tuesday, covering the weekly sales of major new car makers, luxury brands, and prominent new energy vehicle (NEV) manufacturers.
These weekly sales figures, which are based on insurance registrations rather than orders or deliveries, are considered by many investors as a key indicator for tracking carmakers’ monthly deliveries.
Li Auto ceased publishing these figures in early May last year, attributing the decision to complaints from some industry peers.
However, Li Auto resumed sharing the numbers on May 23, 2023, aiming to demonstrate its leading position among China’s EV startups.
By showcasing its strong weekly sales, Li Auto appears to be trying to solidify its leadership status in the public eye, potentially driving growth in orders. Yet, this practice has generated some dissatisfaction among its competitors, CnEV Post added.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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