- The updated Mona M03 maintains its starting price of 119,800 yuan ($17,380) and features the Turing AI chip in higher-trim versions.
- Xpeng aims to boost profit margins through hardware and software bundling.
Xpeng launched the updated Mona M03 electric sedan, upgrading configurations while keeping the starting price unchanged in hopes of further boosting the appeal of its best-selling model.
The company officially introduced the 2026 Mona M03 — currently the only model in its Mona lineup — at an event on Thursday, with prices ranging from 119,800 yuan ($17,380) to 151,800 yuan.
The 2026 Mona M03 is offered in six different configurations. The top-trim Ultra SE model is expected to begin customer deliveries in August 2026, while other versions will start deliveries soon.
With the exception of two entry-level versions, the updated Mona M03 is equipped with Xpeng's in-house developed Turing AI chip, marking the first time the Chinese EV maker has brought high-computing-power smart driving chips to the sub-$20,000 market.
Some versions are equipped with a single Turing AI chip offering 750 TOPS of computing power, while others feature two. This reflects the company's latest business strategy aimed at increasing per-vehicle profit margins through hardware and software bundling.
The Mona M03 is currently the lowest-priced model in Xpeng's product matrix and its most important sales driver.
The model delivered more than 175,000 units throughout 2025, accounting for nearly 41% of total deliveries.
In the first two months of 2026, the sedan continued to top the delivery charts, contributing over 31% of total deliveries during the period. Delivery figures for the Mona M03 in March are not yet available.
While maintaining the same battery pack capacity, the new car's maximum pure electric range has been increased from 620 kilometers previously to 640 kilometers.
The chassis of the new sedan has been upgraded with adaptive damping shock absorbers to provide a more refined driving and riding experience.
The vehicle's cockpit hardware has also seen significant upgrades, featuring the MT8676 cockpit chip and the all-new Tianji AIOS 6.0 system.
Interior details have been refined, with the mobile phone wireless charging pad moved to the front and its power boosted to 50W.
Introducing the Turing chip to its highest-volume, lower-priced model aligns with Xpeng's recent business model adjustments.
This strategy is being advanced as Xpeng improves its financial situation, with the company achieving its first net profit in the fourth quarter of 2025.
Xpeng expects its entire model lineup to complete the transition to its in-house developed Turing chips starting in the second quarter of this year.
The company's management said during its March 23 earnings call that cumulative shipments of the Turing chip have exceeded 200,000 units. The company's chip shipment target for this year is to reach nearly 1 million units.
($1 = 6.8933 yuan)
