Geely, Xpeng EV models threaten market leaders with cheaper, more intelligent cars

Two electric vehicle (EV) models targeting middle-income consumers in mainland China with lower prices have emerged as Tesla’s strongest rivals, as buyers become more budget-conscious.

“Young, middle-income consumers favour electric cars with smart features like autonomous driving systems and voice-activated control technology, but they normally choose the cheapest models due to concerns about the economic outlook and their own job prospects,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Cars [like] Galaxy and Mona are deemed value-for-money vehicles with performance on par with some premium models.”

The Mona 03, a midsize, fully electric sedan priced at 119,800 yuan to 159,800 yuan – which hit the mainland market in August – reported deliveries of more than 15,000 units in January.

The entire mainland EV market reported sales of about 900,000 units in January, up 31 per cent from a year earlier, according to the China Passenger Car Association (CPCA).

The Mona 03, equipped with an advanced driving-assistance system, has a range of at least 515km. It is seen by many young drivers as an equal to Tesla’s Shanghai-made Model 3, which has a price tag of 227,500 yuan for its basic edition.

“It saves a buyer half of the cost if he chooses to own a Mona 03 rather than a Model 3 while the two cars are nearly tied in terms of size, driving range and [intelligence level],” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “We see a trend that customers opt for the cheapest brand and model since they are worried about job security and potential pay cuts [because] they expect economic turbulence ahead.”