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China\u2019s EV market is having a slow start<\/a> to 2024. Sales growth is slowing<\/a> in the current quarter compared to the final quarter of 2023, with companies already returning to price cuts<\/a> and other incentives to keep growing. <\/p>\n Now, one premium EV startup in China may be going in a more affordable direction<\/a> to boost sales. On Saturday, Xpeng announced that it would launch a new brand that\u2019s 50% cheaper than other premium models on the market\u2014and that the new models will hit the market in just a month\u2019s time. <\/p>\n Xpeng shares rose over 7% in Hong Kong trading on Monday. <\/p>\n Xpeng CEO He Xiaopeng said the company will sell the new models between 100,000 and 150,000 Chinese yuan ($13,894-$20,841), around half the price of the 200,000 to 300,000 yuan ($28,211-$42,317) range common for premium models today.<\/p>\n In an interview featured on the state broadcaster CCTV,<\/em> Xpeng\u2019s CEO He also said its mass market models will come with autonomous driving systems. <\/p>\n The Chinese startup, founded in 2014, has long positioned itself as a premium brand. Xpeng\u2019s P7 sedan, one of its better selling models, currently starts at 209,900 yuan ($29,608); the company\u2019s EVs currently start above 200,000 yuan ($28,211).<\/p>\n But now Xpeng may be looking to enter the mass market, defined by EV giant BYD and its affordable models. BYD sold<\/a> 3.02 million vehicles last year, primarily in China, with a majority of them priced below 200,000 yuan ($28,211).<\/p>\n Other EV companies are also going downmarket. Fellow Chinese EV startup Nio will reveal its mass market brand in May, the company said last week<\/a>. <\/p>\n And outside of China, the U.S.-headquartered Tesla has promised to launch an entry-level vehicle<\/a> priced at around $25,000 as soon as late 2025. <\/p>\n\nGoing downmarket<\/h2>\n