Chinese electric car company Xpeng recently announced that its mass-market brand Mona will be selling some models for less than $17,000. The basic version of the Mona M03 electric coupe will start at 119,800 yuan ($16,812) with a driving range of 515 kilometers. A version with more advanced driver assist features and a driving range of 580 kilometers will sell for 155,800 yuan. This price is significantly lower than Tesla’s cheapest car, the Model 3, which costs 231,900 yuan in China.
Xpeng’s driver-assist technology, which includes features like parking assist and automatic backing into a designated position, is considered one of the best available in China. The company plans for the Max version of driver assist to support remote control of entering and exiting narrow parking spots, with deliveries expected to begin after the Lunar New Year holiday in 2025. Xpeng aims to focus on developing artificial intelligence for cars over the next decade and plans to reveal its second-generation humanoid robot in October.
The Mona brand was built using technology acquired from ride-hailing company Didi, with the basic version of driver-assist technology coming from Didi and the more advanced version developed by Xpeng. Xpeng was able to reduce costs for the Mona models by enhancing energy efficiency, particularly with the use of BYD’s popular “blade battery.” The brand is targeting young consumers, with a focus on consumer drivers rather than ride-hailing services. Xpeng’s efforts to reduce costs and focus on energy efficiency have allowed them to compete with other Chinese electric car companies.
Other Chinese electric car companies are also making strides in the market, with Nio unveiling their lower-priced brand Onvo and announcing their first car, the L60 SUV, set for delivery in September. Geely-owned Zeekr plans to launch its first hybrid car next year, reflecting the growing popularity of hybrids in China over battery-only cars. Chinese smartphone company Xiaomi released its first electric car, the SU7 sedan, earlier this year at a competitive price of 215,900 yuan. This competition in the Chinese electric car market presents various options for consumers at different price points.
Xpeng, founded ten years ago, has become a significant player in the Chinese electric car industry, with CEO He Xiaopeng emphasizing the company’s focus on developing artificial intelligence for cars. The company’s Mona brand aims to offer affordable electric vehicles with advanced driver-assist technology, catering to a younger demographic. With the rising demand for electric cars in China, Xpeng’s innovative approach to manufacturing, energy efficiency, and cost reduction positions them well in this competitive market.
