On July 3rd, XPeng officially unveiled the MONA M03. a car positioned in the under-200.000 RMB price range. This model is expected to become a volume seller for XPeng.
The XPeng MONA M03 measures 4780mm in length, 1896mm in width, and 1445mm in height, with a wheelbase of 2815mm. It will be equipped with lithium iron phosphate batteries produced by BYD's Fudi Battery, and will be available in two power versions with maximum outputs of 140kW and 160kW, offering a range of 515km and 620km, respectively.
There were earlier rumors that MONA would become an independent brand under XPeng, but establishing a new dealer network might be too challenging for XPeng at this time.
Once one of the "big three" among new electric vehicle manufacturers, XPeng is now increasingly falling behind Li Auto. Moreover, with the continuous emergence of new competitors, XPeng's position is becoming more precarious.
In terms of sales, XPeng delivered 10.668 vehicles in June, marking a 24% year-on-year increase and a 5% month-on-month growth. From January to June this year, XPeng delivered a total of 52.028 new cars, a 26% increase year-on-year. While these figures may seem positive, the progress of competitors has been much greater.
Xiaomi, which started delivering cars just three months ago, has already matched XPeng in monthly sales. Meanwhile, Li Auto and Huawei's HarmonyOS Auto have monthly deliveries exceeding 40.000 units, and both Leapmotor and NIO have surpassed 20.000 units per month. Compared to itself, XPeng has made some progress, but it has clearly fallen behind the leading group in the industry.
Besides concerns over sales, XPeng's financial losses cannot be overlooked. In 2023. XPeng achieved revenue of 30.68 billion RMB, a 14.2% year-on-year increase, but its net loss reached 10.38 billion RMB, marking the highest annual loss in the company's history. The gross profit margin has even dropped into the negative. XPeng's financial report for the first half of this year has yet to be released.
As a result, XPeng has had to start selling its technology. Earlier this year, XPeng and Volkswagen announced a collaboration to develop two B-class cars, with XPeng primarily responsible for the technology. This is quite a turnaround. Recently, there have been reports that XPeng plans to sell its signature XNGP intelligent driving technology to other car brands.
XNGP represents XPeng's biggest competitive advantage and protective moat. If it weren't absolutely necessary, XPeng would not consider selling this technology. This situation is different from Huawei's HiCar model, as Huawei doesn't manufacture cars itself but acts as a supplier.
A closer look at XPeng's sales composition reveals that the company's current six models have two main sellers: the XPeng G6 and G9. each with monthly sales exceeding 3.000 units. The XPeng X9 also contributes over 1.000 units. However, the XPeng P7. once a sales mainstay, has seen its numbers drop to just over 1.000. XPeng's lowest-priced models, the P5 and G3. have very low sales, and for some reason, XPeng has not updated these two models in a timely manner.
Therefore, the MONA M03 is extremely important for XPeng. It must become a volume seller for the company. However, the competition in the mid-range electric vehicle market is fierce. Whether this model can shoulder such a responsibility remains a big question mark.
