AsianFin -- Li Auto Inc. is stepping up its artificial intelligence (AI) ambitions with the launch of its first smart glasses, marking the Chinese electric vehicle (EV) maker's expansion beyond automobiles into wearable devices. The move positions the company alongside domestic rivals in a rapidly growing market for AI-enabled eyewear as it seeks to widen its user base and offset declining vehicle sales.
AI Generated Image
The Beijing-based automaker announced Thursday on Chinese social media platform Weibo it will unveil AI glasses named Livis at an event on December 3 at 7:30 pm Beijing time, hosted by Fan Haoyu, senior vice president of product at Li Auto. The device will integrate with the company's "Lixiang Tongxue" virtual voice assistant, enabling users to access Li Auto's AI capabilities outside their vehicles.
Li Auto CEO Li Xiang described the product as "Li Auto's best AI accessory" in a social media post earlier this week. He said the company is targeting 3 million to 5 million users across vehicles and personal devices, up from its current base of over 1 million drivers. Li Xiang also revealed that an AI smart speaker is under evaluation as part of efforts to extend the company's AI services across more usage scenarios.
The wearables push comes as Li Auto grapples with steep sales declines. The company reported a surprise adjusted net loss of 359.7 million yuan ($50.5 million) in the third quarter as total sales dropped 36% from a year earlier. Vehicle deliveries fell to 93,211 units from 153,000 a year earlier, and fourth-quarter revenue guidance fell short of analyst expectations.
AI Strategy Takes Center Stage
Li Xiang outlined the automaker's long-term AI vision during the company's third-quarter earnings call, declaring a return to "startup management mode" for its second decade. He said Li Auto would redefine its products as "embodied AI" robots, focusing on AI's ability to understand the physical world and provide proactive services.
The CEO confirmed that an AI system powered by the company's self-developed M100 chip will be delivered in 2026. Chief Technology Officer Xie Yan said the M100 AI inference chip is undergoing large-scale system testing and is expected to commercialize next year. When coordinated with the foundation model compiler and software system, the chip's performance-to-cost ratio will exceed three times that of current high-end chips, Xie said.
Li Xiang stated the company will not enter smartphone manufacturing but noted its in-car assistant already has a mobile app that launched in late 2024. The app functions similarly to general-purpose AI assistants like ChatGPT and is available on mobile devices.
Growing Competition in AI Eyewear
Li Auto's entry into smart glasses reflects broader momentum in China's wearable AI market. Research firm RUNTO forecasts global AI glasses shipments will reach 5.1 million units in 2025, including 1.37 million in China, with both markets expected to grow more than 200%. By 2028, global shipments could surge to 18 million units, representing a compound annual growth rate of 64%.
Technology companies are racing to capture market share. Xiaomi's AI glasses, priced at 1,999 yuan ($282), sold 31,000 units in their first week after launch. Alibaba began presales of its Quark AI Glasses in October at 3,699 to 3,999 yuan, with a full launch on November 27. Huawei, Rokid and other tech giants and startups have also released new products, accelerating industry maturity.
Patent filings show Li Auto has been developing related technology for several years. The company holds a 2021 patent for an in-car VR-glasses control method that adjusts displays based on head movement and coordinates with vehicle systems. The company has established a "wearable robot" unit to lead development of the glasses, which are expected to support AR navigation, fatigue monitoring and other functions integrated with its intelligent cockpit system.
