Xpeng launches mass-market EV with basic driver assistance for under $20,000

BEIJING — Chinese electric car company Xpeng on Tuesday announced that its Mona mainstream brand will begin selling some models for less than $17,000.

The base version of the Mona M03 electric coupe will be listed at 119,800 yuan ($16,812), with a range of 515 kilometers (320 miles) and some parking assist features.

A version of the Mona M03 with more advanced “Max” driver assistance functions and a driving range of 580 kilometers will sell for 155,800 yuan.

In comparison, from Tesla the cheapest car — the Model 3 — costs 231,900 yuan in China after a price cut in April.

Xpeng CEO He Xiaopeng did not specify a release date for the standard version of the car in his presentation on Tuesday. The company told investors on an earnings call last week that mass shipments would begin shortly after Tuesday’s announcement.

Mona M03 pre-sale started on August 8.

The standard Mona M03 driver assistance system supports parking, including parallel parking. The company says it uses a wide range of automatic sensors, cameras and light detection and measurement sensors.

The Max version of driver assistance includes features such as automatically backing the car into a designated position in a dead-end street at the push of a button. Xpeng also plans to support remote control for entering and exiting a tight parking space.

That Max version is scheduled to begin deliveries after the 2025 Lunar New Year holiday, CEO He said. The Chinese holiday lasts from the end of January to the beginning of February next year.

Xpeng’s driver assistance technology is widely regarded as one of the best currently available in China. adzeIts version, marketed as “fully self-driving”, is not fully accessible in China, although it is expected to be launched in the coming months.

Tuesday’s Xpeng CEO presentation also commemorated Xpeng’s 10th anniversary. The founder of Chinese smartphone company Xiaomi, Lei Jun, was among those present

CEO He said that the brand name Mona means “Made of new AI”. He pointed out that in the next decade, Xpeng will focus on developing artificial intelligence for cars.

The company also said Tuesday that it plans to unveil its second-generation humanoid robot in October. It also revealed its own chip, but did not specify what nanometer process – or level of manufacturing technology – is used in its manufacture.

Chinese premium electric car startup Nope in late July, it said it had finished designing an automotive-grade five-nanometer chip, the NX9031. The company teased the chip in December and plans to use it in its high-end ET9 sedan, due for delivery in 2025.

Xpeng built Mona using technology it acquired from ride-hailing company Didi in August 2023.

Wu Zhefeng, a Mona project manager, told reporters on Monday that the basic version of the M03’s driver assistance technology came from Didi, while the more advanced version was made by Xpeng.

Because the battery is the most expensive component of an electric car, he said Xpeng was able to keep costs down for the Mona in part due to efforts to increase energy efficiency. Coupe uses BYDthe popular “blade battery,” Wu said.

He said the brand focuses on young people, two or three years after graduation.

Nearly half of similar cars available in China in this price range are used for transportation, according to Wu. While electric car companies such as BYD have partnered with Didi to promote their cars to drivers on the ride-hailing platform, he said Mona will remain focused on consumer drivers.

BYD, which has quickly become a giant in China’s electric car industry, sells cars in a wide range of prices and models, including many hybrid versions. Consumers in China have increasingly preferred hybrid cars to battery cars as anxiety persists about how far they can drive on a single charge.

Electric car company owned by Geely Zeekr announced earlier this month that it will release its first hybrid car next year.

Other Chinese companies have launched cars this year in direct competition with adze.

Nopewhich focused on premium electric cars, announced a lower-priced Onvo brand in May. Its first car, the L60 SUV, is due to start deliveries in September. The L60 starts at 219,900 yuan ($30,439) versus the Y’s 249,900 yuan ($34,617), according to pricing split in May.

Chinese smartphone company XiaomeiMeanwhile, in March it launched its first electric car, the SU7 sedan for 215,900 yuan.

— CNBC’s Sonia Heng contributed to this report.