Xpeng introduces affordable mass-market electric vehicle with basic driver-assist features for under $20,000.

• The Mona M03 electric coupe has a starting price of 119,800 yuan ($16,812), boasts a driving range of 515 kilometers (320 miles), and comes equipped with some parking assist features.
• The Mona M03 with advanced "Max" driver assist features and a driving range of 580 kilometers will cost 155,800 yuan.
• The price of Tesla's cheapest car, the Model 3, in China was reduced to 231,900 yuan after an April price cut.

On Tuesday, a Chinese electric car company announced that its mass-market brand Mona will offer some models for under $17,000.

The Mona M03 electric coupe will be available for purchase at 119,800 yuan ($16,812), featuring a driving range of 515 kilometers (320 miles) and some parking assist functions.

The Mona M03 with advanced "Max" driver assist features and a driving range of 580 kilometers will cost 155,800 yuan.

The Model 3, the cheapest car, now costs 231,900 yuan in China after a price cut in April.

He Xiaopeng, CEO of Xpeng, did not reveal the launch date for the standard version of the car during his presentation on Tuesday. The company had previously informed investors on an earnings call last week that mass deliveries would commence shortly after the announcement.

Presales of the Mona M03 began on Aug. 8.

The Mona M03 standard driver-assist system includes parking support, specifically parallel parking. The company claims that it employs various automatic sensors, cameras, and light detection and ranging sensors for this feature.

Xpeng's Max driver assist system includes features such as automatically backing up a car to a designated position in a dead-end street with the push of a button, as well as plans for remote control of entering and exiting a narrow parking spot.

The Max version will commence deliveries following the Lunar New Year holiday in 2025, as stated by CEO He. The Chinese holiday falls between late January and early February next year.

Xpeng's driver-assist technology is widely regarded as one of the best currently available in China. However, its version marketed as "full self-driving" is not yet fully accessible in China, although it is expected to be released in the near future.

On Tuesday, Xpeng CEO's presentation honored the 10th anniversary of the company's founding, with Xiaomi founder Lei Jun present.

The CEO stated that the brand name Mona represents "Made of new AI." He highlighted that in the upcoming decade, Xpeng would prioritize the development of AI technology for automobiles.

The company announced on Tuesday that it plans to unveil its second-generation humanoid robot in October. Additionally, the company disclosed its own chip, but did not specify the nanometer process or level of production technology employed in its manufacturing.

In late July, a premium Chinese electric car startup announced that it had completed the design of a five nanometer automotive-grade chip, the NX9031. The company had previously teased the chip in December and plans to use it in its high-end ET9 sedan, which is set for delivery in 2025.

Collaboration with Didi

In August 2023, Xpeng acquired technology from Didi to build Mona.

Didi provided the basic version of driver-assist technology in the M03, while Xpeng developed the more advanced version, according to Wu Zhefeng, a Mona project manager, who spoke to reporters on Monday.

The "blade battery" used in the coupe is popular, according to Wu.

He stated that the brand targets young individuals who have graduated two to three years ago.

Wu stated that nearly half of similar cars available in China within this price range are used for ride-hailing. While electric car companies such as BYD have worked with Didi to promote their cars among drivers on the ride-hailing platform, he said Mona would remain focused on consumer drivers.

In China, BYD has emerged as a dominant player in the electric car market, offering a variety of cars at different price points and models, including many hybrid options. As concerns about the driving range of battery-only cars continue, consumers in China have increasingly opted for hybrids.

Earlier this month, Geely-owned electric car company revealed plans to launch its first hybrid car next year.

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

In May, Onvo, a new brand that has shifted its focus to premium electric cars, announced a lower-priced option. The L60 SUV, its first car, is set to begin deliveries in September. The L60 starts at 219,900 yuan (US$30,439), which is significantly lower than the Model Y's price of 249,900 yuan (US$34,617), as shared in May.

In March, the Chinese smartphone company released its first electric car, the SU7 sedan, priced at 215,900 yuan.

— CNBC's Sonia Heng contributed to this report.