Li Auto Launches "Store Partner" Pilot Program, Granting Managers Operational Control and Profit Sharing

Li Auto recently announced its "Store Partner Program" during the company's 2025 financial results earnings call. Under this initiative, sales stores will serve as fundamental operational units, granting outstanding store managers decision-making authority and profit-sharing rights. The program aims to address issues within the current direct-sales model, such as delayed or distorted market information flow, inconsistent service quality and brand image, and overly lengthy decision-making chains. Previously, after implementing IPD (Integrated Product Development) and PBC (Personal Business Commitment) performance management tools, communication between frontline employees and management became hindered, leading to reduced responsiveness. Additionally, the separation of retail and delivery operations resulted in insufficient cross-departmental collaboration, negatively impacting customer experience. Under the new plan, store managers’ performance metrics will shift from solely focusing on sales volume to being accountable for the store’s overall business outcomes. Their compensation model will also change from commission-based on sales to participation in profit distribution, encouraging them to prioritize actual profitability and long-term operational efficiency. Currently in a pilot phase, the program faces challenges such as varying levels of acceptance among experienced store managers and heightened demands on their comprehensive management capabilities. Its actual effectiveness remains to be seen.