China's Xpeng prices its first budget EV from $16,813

Xpeng budget EV: Chinese electric vehicle manufacturer, Xpeng has priced the first model of its budget sub-brand MONA from $16,813. Xpeng’s Mona has entered into the mainstream but highly competitive segment of the world's largest auto market.

The electric hatchback coupe, MONA M03 is Xpeng's most affordable model. The MONA M03 will compete with other EVs priced in the 100,000-150,000 yuan ($14,035-$21,052) range. This segment of EVs accounts for a third of total car sales in China.

The M03 by Mona will be available in two versions. The base model without advanced autonomous driving technology, will be available for $16,813. The M03 Max will be using Tesla-like technology and is priced at $21,866. Both are more affordable than the lowest-priced Xpeng-branded EV, the P5 sedan, which is priced at $22,000.

“The deliveries of the M03 Max will start early next year. The M03 is the only car with advanced autonomous driving at less than 200,000 yuan ($28,068)", said He Xiaopeng, co-founder and CEO of XPeng Motors. He was speaking at a launch in Beijing that also celebrated the Guangzhou-based carmaker's 10th anniversary.

Following the acquisition of Didi Global's EV development team, Xpeng launched the Mona brand. Didi Global, a Chinese ride-hailing operator, has pulled back significantly from the highly competitive electric vehicle industry.

With Mona, loss-making Xpeng has expected to achieve a better economy of scale to break even. The company said previously that it expected annual sales of at least 100,000 MONA cars.

Xpeng's gross profit margin improved this year due to a 20 per cent rise in the number of EVs sold in the first seven months compared to the previous year, as well as a revenue boost from delivering technical services to Volkswagen.

In April, Xpeng's Chinese rival Nio, NIO.N, debuted Onvo, a lower-cost brand.

The Onvo L60, which will go on sale in September, is likely to compete with Tesla's best-selling Model Y in China.

A lidar sensor costs several thousand yuan, but the price has dropped dramatically in the last two years as Chinese lidar manufacturers like Hesai Technology increased output.

Xpeng has launched the P5 in 2021. However, in September last year, it deleted the lidar sensor from the P5, lowering the lowest price to $22,000 and targeting price-sensitive consumers. Xpeng automobiles equipped with lidar sensors are now priced starting at $31,450.

(With Reuters input)