XPENG Motors has brought out the first model under its new brand Mona, which stands for Made of New Artificial Intelligence, with the cheapest of three versions starting at a record-low price for the Chinese new energy vehicle startup.

The Mona M03’s 515 Long Range edition is priced from 119,800 yuan (US$16,540), Xpeng announced Wednesday. The cost of the 620 Ultra Long Range version will start at 129,800 yuan and of the Max version at 155,800 yuan, it added.

Xpeng will start delivering the Mona M03 515 and 620 Long Range versions in September and the Max edition after next February, according to the Guangzhou-based company. The brand was unveiled at the Beijing Auto Show in April.

The market of passenger cars priced between 100,000 yuan and 150,000 yuan is the most competitive segment in the Chinese auto industry, with sales accounting for 33% of the total in the first seven months of this year, the most among any price segment, according to data from the China Passenger Car Association. Best-sellers were BYD’s Yuan Plus, Dolphin, and Qin Plus models.

Xpeng invested 4 billion yuan in the Mona M03, with carmakers seldom willing to invest so much in a small family car model, said Chairman He Xiao-peng. Its premium version with high-level intelligent driving technology is priced very low for such autos, he added.

With the arrival of the artificial intelligence (AI) vehicle era, China may remain with only seven mainstream brands in the next 10 years, and Xpeng must be one of them, He noted. Annual sales of 1 million units will become the admission ticket for the AI car final, he pointed out.

AI technologies’ weight will affect nearly 50% of purchase decisions, He said, adding that Xpeng must become a global AI car manufacturer over the next decade. Xpeng’s AI system consists of AI vehicles, AI robots, flying cars, and AI chips, he noted.

Regarding investing in overseas factories, Xpeng is just looking for cooperation, He said. It’s better to have overseas partners than to build plants, he noted.

Xpeng’s main models, the G6, the X9, the G9, and the P7, are priced between 200,000 yuan and 400,000 yuan. It delivered 63,000 units in the first seven months, falling behind Li Auto, Nio, Leapmotor Technology, and other rivals.

Xpeng invested US$744 million and moved 3.25% of its shares to acquire the assets and research and development capabilities related to the smart electric car program of Didi Chuxing Technology in August last year.(SD-Agencies)