Li Auto has opened 2 flagship retail centers in Shenzhen and Guangzhou, with the facilities in Beijing and Shanghai set to debut later this month.

(Li Auto's flagship retail center in Shenzhen. Image credit: Li Auto)

While Nio's (NYSE: NIO) flagship showroom, Nio House, continues to be occasionally questioned as a waste of money, its local counterpart Li Auto (NASDAQ: LI) has begun construction of similar facilities.

On January 14, Li Auto opened one flagship retail center each in Shenzhen and Guangzhou, Guangdong province, marking the start of the company's layout of the facility, it announced last night.

These flagship retail centers are based on a new design concept that brings an upgraded experience, Li Auto said on Weibo.

They create a home atmosphere by providing spaces for family users to experience products and services, the company said.

Li Auto's flagship retail centers in Beijing and Shanghai will be unveiled later this month, it said.

(Li Auto's flagship retail center in Guangzhou. Image credit: Li Auto)

In addition, Li Auto's sales network will expand its coverage of China's Tier 3 and Tier 4 cities, and is expected to cover all Tier 3 cities and more than 70 percent of Tier 4 cities by the end of 2024, it said.

Li Auto's text content doesn't mention more details, but the images it shared show that the two flagship showrooms, like most Nio Houses, are two-story buildings, where the first floor houses the vehicle display area and the second floor offers space including a drinks area and rest area.

(The second floor of Li Auto's flagship retail center in Guangzhou. Image credit: Li Auto)

Nio House is Nio's flagship showroom, which functions not only to display and sell vehicles, but also as a lifestyle space for Nio's owners. Its showrooms in China also include the smaller Nio Spaces.

The Nio House building generally consists of two areas, a display area for models on the first level and a second level that offers a variety of functions but is only open to vehicle owners.

Nio users can hang out with friends over a cup of coffee and chat, or brainstorm with workmates, the company's description indicates.

(The second floor of Li Auto's flagship retail center in Shenzhen. Image credit: Li Auto)

At major auto shows over the past few years, Nio has typically had a Nio House onsite to showcase its premium services as well as provide a rest area for its vehicle owners.

By the end of 2023, Nio had more than 140 Nio Houses around the world, six of which are in Europe, data monitored by CnEVPost show. It also has more than 320 Nio Spaces worldwide, including eight in Europe.

Separately, a site visit to Li Auto's flagship retail center in Shenzhen by local automotive media outlet Xchuxing revealed that the facility's setup is similar to that of a Nio House.

The Shenzhen store has 2 floors, with a vehicle showroom on the first floor and a negotiation and children's area on the second, according to the report.

(Li Auto's flagship retail center in Shenzhen. Image credit: Li Auto)

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