Xpeng, the Chinese electric vehicle maker, has announced the pricing for the first model of its budget sub-brand, MONA. The MONA M03 electric hatchback coupe will be priced from $16,813, making it a competitive option in the affordable EV market in China. This price range of 100,000-150,000 yuan ($14,035-$21,052) accounts for a significant portion of total car sales in the country.
There will be two versions of the MONA M03: an entry-level model without advanced autonomous driving technology, and the M03 Max, which will feature Tesla-like technology. Both versions are priced lower than Xpeng’s lowest-priced Xpeng-branded EV, the P5 sedan, which starts at $22,000.
The M03 Max, which is “the only car with advanced autonomous driving at less than 200,000 yuan ($28,068),” will begin deliveries early next year. He Xiaopeng, co-founder and CEO of XPeng Motors, made these announcements at a launch event in Beijing, which also celebrated the company’s 10th anniversary.
Xpeng’s decision to develop the MONA brand came after the acquisition of the EV development unit from Didi Global, a Chinese ride-hailing company that has scaled back its presence in the electric vehicle market. By launching MONA, Xpeng aims to achieve better economies of scale to break even. The company has set a sales target of at least 100,000 MONA cars annually.
Xpeng’s gross profit margin has already improved this year, thanks to a 20% increase in EV sales in the first seven months compared to the previous year. Additionally, the company has seen a revenue boost from providing technology services to Volkswagen. These positive developments signal a promising future for Xpeng’s new budget sub-brand.
It’s worth noting that Xpeng’s Chinese rival, Nio, also launched a lower-priced brand called Onvo in April. The Onvo L60, set to begin selling in September, will directly compete with Tesla’s popular Model Y in China.
Both the Onvo and MONA EVs have opted not to use lidar sensors in their advanced autonomous driving technologies, following a similar strategy to Tesla’s camera-only Full-Self Driving system. By excluding lidar sensors, these manufacturers can reduce the hardware costs for their EVs. While lidar sensors have become more affordable in recent years, Xpeng made the decision to remove the lidar sensor from its P5 model last year to make it more price-sensitive for consumers.
In conclusion, Xpeng’s pricing announcement for its MONA brand’s first model, the M03 electric hatchback coupe, has positioned the company to compete in the highly sought-after affordable EV market in China. With the M03 Max offering advanced autonomous driving technology at a relatively low price, Xpeng aims to bolster its position and achieve better economies of scale. The decision to forgo lidar sensors aligns with Tesla’s approach, emphasizing cost reduction while targeting price-sensitive consumers. With its recent growth in EV sales and collaborations with major automakers, Xpeng is poised for continued success in the evolving electric vehicle landscape.