MONA M03 variants and pricing
The MONA M03 comes in two variants: an entry-level model without advanced autonomous driving features starting at $16,813, and the M03 Max, equipped with Tesla-like technology, starting at $21,866. Both versions are priced lower than Xpeng’s current entry-level EV, the P5 sedan, which starts at $22,000.
Launch and delivery timeline
Deliveries for the M03 Max, described by Xpeng co-founder and CEO He Xiaopeng as “the only car with advanced autonomous driving under 200,000 yuan ($28,068),” will commence early next year. This announcement was made during a launch event in Beijing, which also marked Xpeng’s 10th anniversary.
Xpeng’s strategic expansion with MONA
Xpeng developed the MONA brand after acquiring the EV development unit from Didi Global, a Chinese ride-hailing giant that has since scaled back its ambitions in the competitive EV market. With MONA, Xpeng aims to achieve economies of scale to help the company break even, targeting annual sales of at least 100,000 MONA vehicles.
Financial performance and market competition
Xpeng’s gross profit margin has seen improvement this year, driven by a 20% increase in EV sales during the first seven months and additional revenue from offering technology services to Volkswagen.
Xpeng’s competitor Nio (9866.HK) also introduced a lower-cost brand, Onvo, in April, with the Onvo L60 expected to launch in September, poised to compete with Tesla’s (TSLA.O) best-selling Model Y in China. Both Onvo and MONA EVs forego lidar sensors in their advanced autonomous driving systems, opting for a camera-only approach similar to Tesla’s Full-Self Driving, which reduces hardware costs.
Lidar technology and price adjustments
While Xpeng was the first to introduce lidar sensors in mass-produced vehicles with its P5 in 2021, it removed the lidar option last September to lower the P5’s starting price to $22,000, targeting cost-conscious buyers. Xpeng’s EVs equipped with lidar sensors currently retail at $31,450.
