Summary of Key Points
The new generation of the MEGA was launched on September 2nd, priced at only 509,800 yuan (a reduction of 20,000 yuan from the previous model). The main improvements include enhancements to the chassis, assisted driving systems, and the cabin experience, while the exterior design retains its original contours with only minor adjustments. The sales performance of this vehicle has been quite volatile: 3,229 units were sold in the month it was released in 2024, but then sales declined; after a facelift in 2025, sales temporarily rebounded to over 3,000 units per month, only to drop back to a few hundred units in 2026. The current high-end new energy MPV market is highly competitive, with competitors such as the Zhijie V9 and Tengshi D9. For Li Xiang, the goal of the MEGA is not to increase sales volume but to optimize the product portfolio, raise the average selling price, and improve the gross margin. Additionally, he believes that MPVs represent the future of family vehicles, and the current investment is in preparation for the L3/L4 autonomous driving era.
Detailed Analysis
1. New Vehicle: Price Reduction + Configuration Improvements, but No Compromises on Design
The most noticeable change in the new MEGA is the price reduction of 20,000 yuan (from 529,800 yuan to 509,800 yuan), along with targeted improvements to address the shortcomings of the previous model:
- More Flexible Chassis: The addition of rear-wheel steering makes turning and parking easier, and an active anti-roll bar prevents shaking during cornering, solving the issue of the large size making the vehicle difficult to handle.
- Improved Autonomous Driving: The number of lidars has increased from one to four, and the chip has been replaced with Li Xiang's own-developed MahM100, enhancing the vehicle's assisted driving capabilities.
- More Practical Cabin: A new through-mounted large screen and overhead main lights have been added, and the second-row seats can be adjusted to welcome guests at a 45-degree angle, provide a 90-degree view, or face each other at a 180-degree angle, with a small table that can be used as a “living room” (ideal for family interactions or temporary office use).
However, the design controversy remains unresolved; some critics still find the vehicle resembles a “bullet head,” but Li Xiang insists on maintaining the original design, arguing that “imitation carries lower risk, while originality is what will be remembered by the world.” Only minor adjustments have been made to the front and rear styling and door handles.
2. Sales Performance: Volatile but Now at a Low Point
The sales of the MEGA have been very inconsistent:
- 3,229 units were sold in the month of its release in 2024, but this number dropped to 1,145 in April, with annual sales totaling just over 10,000 units.
- After the facelift in 2025, sales rebounded, reaching 2,304 units in June (making it the best-selling MPV in the 500,000-yuan price range), and then increased to over 3,000 units in August and September, for an annual total of 18,500 units.
- In 2026, sales declined again, with only 3,179 units sold from January to July, and a mere 336 units in July (a 88% decrease year-over-year), placing it at the bottom of the new energy MPV market.
The reason for such volatility is the limited market demand: Pure electric MPVs in the 500,000-yuan price range are not a mainstream choice, and the large size of these vehicles makes them inconvenient for parking and urban driving. Family customers may prefer SUVs. Additionally, the increasing competition has also diverted customers to other models.
3. Competitive Market
The high-end new energy MPV market is highly competitive:
- The Tengshi D9 (under BYD) has consistently been the best-seller, focusing on value for money.
- Models like the Extreme Knight 009, Xpeng X9, and Zhijie V9 (a collaboration between Huawei and Chery) are constantly updating their features; for example, the Zhijie V9 offers Huawei's advanced autonomous driving technology, and the Xpeng X9 offers more flexible interior space.
- These competitors overlap in price range (400,000-600,000 yuan) with the MEGA, and some even offer better features or are cheaper, reducing the MEGA's competitive advantage.
4. The Importance of the MEGA for Li Xiang’s Business
The MEGA accounts for a small portion of Li Xiang’s total sales (only 2% in the second quarter of 2026), but it plays two key roles:
- Raising the Average Selling Price: As one of Li Xiang’s most expensive models, higher sales of the MEGA can boost the overall average vehicle price and increase the profit per unit.
- Improving Gross Margin: Li Xiang’s company reported a year-on-year increase in gross margin in the second quarter of 2026, which the management attributed to the higher proportion of higher-priced models in the portfolio. If the new generation of the MEGA sells well, it could help improve the company’s gross margin. However, it is unlikely to alone reverse the company’s financial situation due to its limited sales volume.
In short, the MEGA is not intended to drive sales growth but to maintain the company’s image and generate profits.
5. Li Xiang’s Long-Term Vision: MPVs as the Future of Family Vehicles
Li Xiang has stated on social media that “SUVs are more profitable in the short term, but MPVs represent the ultimate form of family vehicles.” His reasoning is that as autonomous driving technology (L3/L4) becomes more widespread, driving will become less of a concern, and customers will value larger space, comfort, and ease of getting in and out of the vehicle—these are inherent advantages of MPVs. By developing the MEGA now, Li Xiang is preparing for the future market. This strategy involves betting on the future, believing that MPVs will become the mainstream in a few years, despite their current mediocre sales performance.
Conclusion
The new generation of the MEGA serves as a product for Li Xiang to address shortcomings and prepare for the long term: The price reduction and configuration improvements are aimed at boosting sales, while the maintenance of the original design reflects the brand’s commitment to innovation. Its real value lies in helping to optimize the company’s profit structure and position the brand for the future family vehicle market. However, whether this strategy will be successful depends on customer acceptance, as the high-end MPV market is highly competitive, and the 500,000-yuan price range remains a significant barrier for many family customers.
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