Xpeng, a Chinese automaker, introduces its first affordable electric vehicle starting at $16,813

BEIJING — Xpeng, a leading Chinese electric vehicle manufacturer, introduced its budget sub-brand MONA with the launch of the MONA M03 electric hatchback coupe, priced from $16,813. This move marks Xpeng’s entry into the competitive mainstream segment of China’s auto market, where EVs in the 100,000-150,000 yuan range make up a significant portion of total car sales.

The MONA M03 will be available in two versions: an entry-level model without advanced autonomous driving technology priced at $16,813, and the M03 Max, which features Tesla-like technology and starts at $21,866. Both versions are more affordable than Xpeng’s lowest-priced EV, the P5 sedan, priced from $22,000.

He Xiaopeng, co-founder and CEO of XPeng Motors, announced that deliveries of the M03 Max, touted as “the only car with advanced autonomous driving priced below 200,000 yuan ($28,068)”, will begin early next year. The introduction of the MONA brand follows Xpeng’s acquisition of the EV development unit from Didi Global, enabling the company to enhance its economy of scale and drive towards profitability.

In a strategic move to offer competitive pricing and target price-sensitive consumers, Xpeng and its Chinese rival Nio have opted not to use lidar sensors in their advanced autonomous driving technologies for the MONA and Onvo EVs, respectively. This approach aligns with Tesla’s camera-only Full-Self Driving system, reducing hardware costs for EVs.

Although Xpeng initially launched the P5 with optionally equipped lidar sensors in 2021, the company later removed the feature to decrease the starting price to $22,000 and appeal to cost-conscious consumers. Xpeng’s continued innovation and strategy to adapt to market demands demonstrate its commitment to driving growth and innovation in the evolving automotive landscape.