• Xpeng will equip its lowest-priced model with its in-house developed Turing AI chip for the first time, supporting all-scenario assisted driving capabilities.
• The strategy reflects Xpeng’s attempt to improve its profit margins and appeal through tiered hardware and software options.

Xpeng previewed its 2026 Mona M03 electric sedan on Wednesday, an updated model that will feature the company’s in-house developed Turing AI chip for the first time.

Xpeng’s chairman and CEO, He Xiaopeng, announced on Weibo today that the 2026 Mona M03 has already arrived at stores nationwide.

He said that the updated Mona M03, equipped with the Turing AI chip, brings up to 750 TOPS of smart driving computing power to the sub-$20,000 market.

The chip will support all-scenario assisted driving capabilities, marking Xpeng’s attempt to achieve higher profit margins on its best-selling model by bundling chips and software.

The Mona M03 is currently Xpeng’s lowest-priced model, with a starting price of RMB 119,800 ($17,380) in China.

The electric sedan is also Xpeng’s most important sales driver. For the full year of 2025, the Mona M03 delivered 175,689 units, accounting for 40.91% of total deliveries, according to data compiled by CnEVPost.

In the first two months of 2026, the model continued to top the delivery charts. It delivered 11,097 units in January and February, contributing 31.47% of Xpeng’s deliveries during the same period.

Mr. He also said that the updated model has been refined in its exterior and interior details to provide a more exquisite visual and tactile experience.

To attract young users, the model has been upgraded with comfort features typically found in RMB 200,000-class vehicles, he said.

In addition to the in-house Turing chip, the updated Mona M03 also features significantly upgraded cockpit hardware, equipped with the MT8676 cockpit chip and 24 GB of RAM.

This will make the operation of the 15.6-inch, 2.5K resolution central screen much smoother. The vehicle also adds features such as a heated steering wheel and double-layer acoustic glass windows.

The updated Mona M03 has a pure electric range of up to 640 kilometers, gaining an additional 20 kilometers of range with the same 62.2-kWh battery pack.

Introducing the Turing chip to the Mona M03 aligns with Xpeng’s recent business model adjustments, as the company is beginning to offer tiered paid smart driving options for its models.

On March 18, Xpeng shifted the strategy for its P7 electric sedan, launching cheaper trims and introducing a tiered AI chip pricing strategy.

The three Max variants of the P7 now come standard with one Turing chip. Customers can pay RMB 12,000 to upgrade to a version with two chips.

Customers can also choose to pay RMB 20,000 for the Ultra version equipped with three Turing chips. This flexible pricing is designed to boost demand and improve profitability.

Mr. He said during an earnings call on March 23 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.

Xpeng expects to complete the transition to the Turing chip across its entire lineup starting in the second quarter of this year.

This strategy is being advanced as Xpeng improves its financial situation. The company achieved its first-ever quarterly net profit under GAAP standards of RMB 380 million in the fourth quarter of 2025.

Xpeng plans to increase its physical AI-related R&D investment to RMB 7 billion in 2026 and will launch four new models within the year.

($1 = RMB 6.8925)