Major car brands face competition from £16,599 Chinese electric vehicle with self-driving technology
A Chinese company is set to launch a new electric car for less than £17,000 with self-driving technology in a major step forward for cheaper zero emission vehicles.
Xpeng unveiled its most affordable vehicle earlier this week and is aiming to compete with some of the largest manufacturers in China.
Around one-third of EV sales fall in the price point between 100,000 and 150,000 yuan or £10,692 and £16,038 – something which is not yet seen in the UK.
The MONA M03 hatchback coupe will start from $16,813 (£12,763) as its most affordable option without most of the cutting-edge technology.
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The M03 Max will have advanced autonomous driving technology, although this will be slightly more expensive at around $21,866 or £16,599.
He Xiaopeng, co-founder and CEO of XPeng Motors, said the M03 Max would be “the only car with advanced autonomous driving at less than 200,000 yuan (£21,400)”.
This price tag alone would be cheaper than the vast majority of electric vehicles on the UK market, let alone a vehicle with self-driving technology.
Both of these models also have a lower price point than Xpeng’s current cheapest vehicle – the P5 sedan – which costs around $22,000 or £16,708.
Deliveries of the models are expected to begin at the start of 2025 as part of Xpeng’s sub-brand MONA, which is based in Guangzhou.
The vehicles, which were announced during Xpeng’s 10th anniversary in Beijing, will be based on a platform from Didi Global – a ride-hailing company.
It has not yet been announced if and when the cheaper electric vehicles will be launched in the UK, Europe or North America.
It comes as another major economy looks to crack down on electric cars manufactured in China as Canada introduced a new 100 per cent tariff on the vehicles, as well as a 25 per cent duty on Chinese steel and aluminium.
Canadian Prime Minister Justin Trudeau said the plans would transform the automotive sector in the country, aiming to become a “global leader” against the threat of China’s “unfair advantage”.
The duties are expected to come into effect on October 1, despite massive criticism from the Chinese Commerce Ministry, which called on Trudeau to “immediately correct its erroneous practices”.
Roland Bodlovic, technical director at Versinetic, said: “The recent Canadian decision to impose a 100 per cent tariff on Chinese-made electric vehicles (EVs), including those produced by Tesla in Shanghai, signals a significant shift in the global EV market.
“This affects any manufacturer making EVs in China, not just Chinese brands.
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“As such, manufacturers such as Tesla could be affected by this. Essentially, if you’re not manufacturing in China, you won’t be subjected to this tariff.
“Tesla has three other factories across the world, as well as its Shanghai plant, and can supply Canada from one of their other factories potentially. I don’t see this as something likely to unsettle Tesla too much.”