As part of the restructuring, Li Auto’s autonomous driving division was split into 11 sub-departments and simultaneously announced the cancellation of its large-scale “closed development” model.
On September 19, Chinese media reported that Li Auto has completed a major organizational overhaul of its autonomous driving division.
The company’s original three core R&D teams were entirely dismantled, expanding the department count to 11, while simultaneously announcing the cancellation of its previously enforced large-scale closed development model.
This restructuring is closely linked to the departures of several key executives. Earlier this year, senior directors Jia Peng, Xia Zhongpu, and Wang Jiajia resigned to pursue entrepreneurial ventures, leaving critical gaps in the teams.
These executives had been responsible for VLA and world model development, end-to-end models, and mass-production R&D, making them pivotal figures in Li Auto’s autonomous driving research. Their departures prompted the company to reorganize its structure to maintain R&D momentum.
Specifically, the three core segments—model algorithms, mass-production R&D, and the data loop—have been further subdivided.
The algorithms group was split into basic models, VLA models, and model engineering; mass-production R&D was segmented into production delivery, software development, and active safety; and the data loop was divided into data platform and data labeling.
Along with retained planning management, AI evaluation operations, and a newly established innovation business unit, the restructure now comprises 11 sub-departments, all reporting directly to Lang Xianpeng, Senior Vice President of Autonomous Driving R&D.
The move aligns with Li Auto’s strategic shift to make VLA its core technology route. With the launch of the i8 in August, Li Auto became the first automaker globally to mass-produce vehicles equipped with VLA models, expanding the system to its entire AD Max lineup in September.
While VLA is widely regarded as a next-generation technology, it carries higher development complexity, demanding more from team collaboration and resource allocation.
Previously, the closed development model accelerated progress on both end-to-end and VLA initiatives, but it also introduced challenges, including cross-department coordination complexities and frequent business travel for personnel.
With the technical roadmap now clearer, Li Auto has opted to eliminate the closed model at the primary department level, returning teams to conventional collaborative workflows and emphasizing interdepartmental coordination and independent value creation.
In an internal memo, Lang Xianpeng stressed that Li Auto must pursue new markets and define new standards to catch up with competitors, rather than simply optimizing within existing frameworks.
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