On the evening of April 2nd, the 2026 XPeng MONA M03 was officially launched. The new model is available in six variants, with a guide price range maintained between 119,800 and 151,800 yuan. The refresh strategy is clear: the starting price remains unchanged while configurations receive comprehensive upgrades.
It was learned that within just 37 minutes of its launch, firm orders for the new vehicle surpassed 10,000 units, with the Max version accounting for over 85% of the orders. As the key model that previously pulled XPeng out of a sales slump, this facelift of the MONA M03 not only carries the heavy responsibility of boosting sales but is also crucial to the strategic direction following the company's rebranding to "XPeng Group."
The 2026 MONA M03 features significant upgrades. Exterior additions include two new colors: Roland Purple and Avocado Green. The clear coat thickness is 20% above the industry average, with an 8% improvement in gloss. The interior features over 70% soft-touch materials. The front row has been upgraded with 14-point massage seats and a 20-speaker Hi-Fi audio system, paired with double-layer laminated acoustic glass and RNC active noise cancellation technology - features typically found in higher-priced models.
However, the real highlight is the democratization of advanced driver-assistance systems. The new model offers dual computing power versions: Max and Ultra SE. The Max version is equipped with a single Turing AI chip delivering 750 TOPS of effective computing power, while the Ultra SE version features dual Turing AI chips with computing power reaching 1500 TOPS. He Xiaopeng stated that this marks the first time globally that this level of computing power has been brought to the $20,000 price bracket, declaring at the launch event: "This time, we've truly put 500,000-yuan level smart driving and 200,000-yuan level comfort into a 110,000-yuan car."
Pricing-wise, the 2026 MONA M03 offers six configurations priced between 119,800 and 151,800 yuan. The starting price remains consistent with the previous model, with four variants offering more features at the same price, while two new high-end variants extend the price range upward by 12,000 yuan.
He Xiaopeng revealed that the new MONA M03 achieves even higher gross margins than the previous model, addressing external skepticism about whether "more features for the same price" would impact profitability. He further clarified: "I believe there's no value in making cheap, low-margin cars. We avoid vehicles under 100,000 yuan entirely; while there might be volume, the value is too small."
In other words, XPeng does not intend to compete solely on low prices but aims to differentiate itself through smart driving capabilities and premium features within the 110,000 to 150,000 yuan price segment. The market has responded positively. The 10,000 firm orders within 37 minutes, with the Max version comprising over 85%, indicates more than 80% of customers are willing to pay a premium for advanced smart driving features.
Looking back to 2024, the launch of the first-generation MONA M03 marked a turning point for XPeng's sales surge. In 2025, the MONA M03 achieved annual sales of 197,500 units, accounting for 46% of XPeng's total annual sales, and topped the 100,000 to 200,000 yuan pure electric sedan segment for 18 consecutive months. It has proven to be a genuine "hero model" both financially and in the market.
However, entering 2026, competition in the new energy vehicle market shows no signs of easing, and XPeng faces increasing sales pressure. The timing of the 2026 MONA M03 launch is particularly strategic. As XPeng's sales pillar, the MONA M03 saw its sales decline to 6,718 units in January and 4,373 units in February, partly because consumers were holding out for the facelift.
While the 10,000 orders in 37 minutes is impressive, it also reflects a concentrated release of pent-up demand from previously hesitant buyers. Nevertheless, the competitive landscape in the 100,000 to 150,000 yuan pure electric family sedan market is changing rapidly, with new models like the Dongfeng Nissan N7 and Leapmotor B01 entering the fray. As smart features become more accessible and ranges above 600 km approach standard, whether the 2026 MONA M03 can maintain its 18-month segment sales champion record remains to be seen.
The MONA M03 facelift addresses immediate sales concerns, while the company's rebranding a week earlier points to longer-term ambitions. On March 27th, XPeng announced in a Hong Kong filing that effective April 1, 2026, its Chinese name would change from "XPeng Automobile Limited" to "XPeng Group," while its English name remains "XPeng Inc." The Hong Kong stock short name will simultaneously change from "XPENG-W" to "XPENG GROUP-W."
Removing the word "Automobile" signals the company's desire not to be viewed solely as a car manufacturer. He Xiaopeng explained the rationale behind the name change, stating that while the past decade focused on smart electric vehicles, the new decade will combine new energy vehicles with AI, creating "AI + new energy vehicles."
He believes the next ten years will bring massive transformation. Whereas two or three years ago he considered robotics a development for the following decade, recent advancements in physical AI models have been "extremely surprising." He now judges that the robotics era is accelerating significantly. Previously believing Level 5 full autonomy was unattainable within ten years, he now thinks it "really could be achieved soon," with the robotics era potentially arriving even faster due to lower safety requirements compared to cars.
Based on this outlook, XPeng Group's business scope is no longer confined to automobiles. He Xiaopeng revealed the company is using cars as a foundation to expand into flying cars, humanoid robots, AI chips, and autonomous driving models. In fact, as early as last November's XPeng Tech Day, he redefined the company's core positioning as an explorer of physical AI mobility and a global embodied intelligence company.
This year, the organizational structure has been adjusted accordingly, merging the Autonomous Driving Center and Intelligent Cockpit Center into a General Intelligence Center to consolidate AI capabilities and share a unified physical AI base model. According to plans, XPeng's four major physical AI applications - second-generation VLA, Robotaxi, humanoid robots, and flying cars - are all scheduled to enter mass production in 2026.
In March, XPeng announced the establishment of an independent Robotaxi business unit, planning to launch three fully self-developed mass-produced Robotaxi models in 2026. A full-chain mass production base for humanoid robots has also commenced construction, targeting a monthly capacity of thousands of units by year-end.
However, behind these ambitious narratives lies a pressing practical question: how will XPeng balance its finances amid sustained high investments in AI? Public information indicates XPeng plans R&D investment in AI alone to reach 7 billion yuan in 2026. While the company narrowed its net loss to 1.14 billion yuan in 2025, it remains some distance from stable profitability.
He Xiaopeng's stance is clear: "Why are we committed to heavy investment? We believe change is coming quickly... I am very firmly convinced that technology is extremely effective after undergoing dramatic transformation." Avoiding price wars and continuing to excel in smart driving represent XPeng's chosen path of differentiation. The higher gross margin of the new MONA M03 also provides confidence for this strategy.
Nevertheless, market patience regarding profitability is wearing thin. XPeng must continue to demonstrate how it will balance strategic expansion with financial stability. He Xiaopeng views the present as a new starting point for XPeng. What remains to be seen is not only whether MONA M03 orders translate into deliveries and if the momentum can be sustained, but also how XPeng will play its AI card - when it will be played, and whether the results will justify the investment.
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