Li Auto distributed annual bonuses for 2025 to all employees on April 10, but staff in frontline sales operations across 26 provinces received no bonus. Research and development employees also saw their bonuses significantly reduced compared to the previous year. Additionally, the company has changed its performance evaluation cycle from semi-annual to annual.
Last year, the sales operations department received bonuses twice—in April and August. One employee from a provincial sales team explained, "There is no annual bonus this year, and with the evaluation cycle extended to one year, our total annual income by next April could drop by nearly 30%." The employee added that with a base salary of ¥250,000, losing two ¥50,000 bonuses would reduce annual earnings by ¥100,000. For those considering job changes, April is seen as the best time to move, as a higher income record improves negotiation leverage.
In contrast, most R&D staff received bonuses equivalent to 1 to 1.5 months of salary. One employee with nearly two years of tenure noted that while they received 1.2 months' pay as a bonus last year, this year’s bonus was only one month's salary. Another employee, who received a higher performance rating this year, still saw no increase in bonus amount.
In 2025, Li Auto’s annual sales fell 18.8% to approximately 406,300 vehicles, achieving only 75% of its annual target. Revenue declined to ¥112.3 billion, with net profit plunging over 80% to ¥1.124 billion. Industry-wide, auto production and sales in China rose by 10.4% and 9.4%, respectively, yet the sector's profit margin fell to 4.1%.
Like many automakers, Li Auto ties bonuses to company and departmental performance. The company uses a five-tier performance rating system: O (Outstanding), E (Exceeds Expectations), M (Meets Expectations), I (Needs Improvement), and F (Fail). In March 2023, Li Auto adjusted its evaluation cycle from quarterly to semi-annual and shifted the rating distribution to 20% for O/E, 70% for M, and 10% for I/F—intended to align with long-term business cycles and reduce administrative costs.
Starting in 2024, employee bonuses have been linked not only to departmental results but also to the company's sales and gross margin targets. For 2026, Li Auto aims to sell 480,000 vehicles. To support this goal, the company plans product upgrades and a revamped store management approach. At the upcoming Beijing Auto Show, Li Auto will showcase the new Li L9 Livis, featuring an 800V fully active suspension system, full wire-controlled chassis, two self-developed 5nm Mahe 100 chips, and a 360-degree lidar system. CEO Li Xiang described the model as offering a "generational leap in experience."
Additionally, the company will implement a store partner model, granting store managers greater autonomy in customer acquisition, operations, and team management. Li Xiang emphasized that effective sales system management is crucial to achieving 20% year-on-year growth.