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Chinese manufacturer Xpeng Motors has unveiled its budget EV model, the Mona M03, with a starting price of 119,800 yuan ($16,800).?
The launch, announced by He Xiaopeng, co-founder and CEO of XPeng Motors at a virtual press event on August 27 marks the company’s aggressive push into the affordable EV market segment.
The M03 comes in two variants: a base model without advanced autonomous driving starting at $16,813 and the more advanced M03 Max, equipped with advanced autonomous driving, priced at $21,866. Both undercut Xpeng’s previous cheapest offering, the P5 sedan, which starts at $22,000 and Tesla’s Model 3 standard version which is priced at $42,000.
The M03 has its roots in an unfinished project that Xpeng acquired from ride-hailing provider Didi for $744 million last year. The Max version of the model will start shipping early next year as, “the only car with advanced autonomous driving at less than 200,000 yuan ($28,068),” according to Reuters.
Battle for the Soul of Budget EV Market Rages on
Xpeng’s launch of the affordable Mona M03 at $16,800 highlights a growing trend in the electric vehicle market towards more accessible options. Tesla in April announced a price cut for its autonomous driving EVs to make it more affordable to the public. Earlier this year, BYD slashed prices on most of their updated models, which helped to revive its sales.
With competition building fast in this segment, several manufacturers are now offering EVs below $30,000. Some affordable EVs soon to hit the market include Volkswagen’s Electric Urban Car Family, which is expected to arrive in 2027 at the base price of $21,800, and the 2025 Nissan Leaf EV starting at $28,140.
Despite the lackluster performance of the EV market in recent quarters, this latest EV launch from Xpeng shows that companies are still willing to bet big on the affordable EV market.
