BEIJING, Aug 27 (Reuters) - Chinese electric vehicle maker Xpeng (9868.HK), opens new tab priced the first model of its budget sub-brand MONA from $16,813 on Tuesday, wedging into the mainstream but highly competitive segment of the world’s largest auto market. The MONA M03 electric hatchback coupe is Xpeng’s most affordable model and will compete with other EVs priced in the 100,000-150,000 yuan ($14,035-$21,052) range, which accounts for a third of total car sales in China.
There will be two versions of the MONA M03: an entry-level one without advanced autonomous driving technology available from $16,813, and the M03 Max that uses Tesla-like technology and is priced from $21,866. Both are cheaper than the lowest priced Xpeng-branded EV, the P5 sedan, which is priced from $22,000. Deliveries of the M03 Max, “the only car with advanced autonomous driving at less than 200,000 yuan ($28,068)”, will start early next year, said He Xiaopeng, co-founder and CEO of XPeng Motors. He was speaking at a launch gala in Beijing that also celebrated the Guangzhou-based carmaker’s 10th anniversary.
We have already seen market dominance with solar panels from China over the past decade. While prices are still consistently trending downward. This decline can largely be attributed to the intense competition among numerous manufacturers in China.
The same logic can be applied to Chinese EV manufacturers.
In contrast, other countries typically at best have only have a couple of EV manufacturers, often receiving substantial government protection akin to a helicopter parent. This lack of competition keep prices higher.