Li Auto’s head of autonomous driving technology, Zhongpu Xia, will leave the company as it changes its approach to driver-assist systems. Xia played a key role in launching the company’s current system, which has been well received in China’s competitive electric vehicle market.

The decision to change direction follows CEO Li Xiang’s comments on the limitations of the existing system. Although effective in standard conditions, the system reportedly faced challenges in complex driving scenarios. It functioned more like a mimic than an intelligent driver.

Li Auto is now focusing on developing a new generation of driver-assist models that aim to better understand real-world environments. This new system, which will integrate visual, language, and action-based capabilities (VLA), is still in the early stages of development.

Peng Jia, the head of advanced autonomous systems at Li Auto, is leading the effort to implement this new architecture. Xia’s departure follows weeks of reduced involvement in key projects. Reports indicate internal disagreements regarding the company’s technical direction.

Li Auto did not respond to a request for comment at the time of publication.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Chinese EV makers’ in-house chip race reshapes autonomous driving leadership

Li Auto’s leadership change happens within a broader strategic shift across Chinese EV manufacturers investing in proprietary silicon.

The company is developing its own chip, codenamed “Schumacher,” expected to be finalized by the end of 2024, as part of an industry-wide move away from reliance on external suppliers like Nvidia1.

This mirrors direct competitors’ strategies, with Xpeng creating a Turing chip and NIO developing its Shenji NX9031 chip scheduled for early 2025 deployment2.

The development of these specialized chips is critical for processing the massive data streams from multiple sensors. Li Auto and its competitors use over 30 sensors per vehicle, including LIDAR, cameras, and radar, in a multi-sensor approach that distinguishes Chinese manufacturers from Western counterparts3.

Control over chip development gives these companies greater flexibility to adapt their autonomous systems and potentially create competitive advantages in a market where technological differentiation is increasingly vital for survival.

2️⃣ Economic pressure forces technological pivots and industry consolidation

Li Auto’s autonomous driving strategy shift reflects existential pressures facing Chinese EV startups competing in an overcrowded market.

Chinese automotive experts predict that EV manufacturers selling fewer than 2 million vehicles annually will struggle to cover their R&D costs, with some analysts giving “zero probability” for independent survival of companies like Li Auto without mergers or restructuring within three years4.

Recent Li Auto developments