Priced at RMB 119,800 (USD 16,772), GAC Aion’s new RT model enters the stage alongside Xpeng Motors’ Mona M03, albeit without stirring much buzz over pricing.
While the Aion RT captivates in promotional images, the real-life model at the launch event felt a bit subdued, resembling a trimmed-down version of BYD’s Seal more than a bold new Hyptec (formerly Hyper) model. The visual appeal, a major factor in this vehicle segment, fell slightly short against the Mona M03, which hit the market with greater fanfare.
GAC is pitching the Aion RT as a smart sedan with a new style, promising sleek aesthetics and top-notch autonomous driving to rival the Mona M03. But even in the design department, the RT comes up a bit shy.
On the tech side, however, the Aion RT delivers a solid performance. With light detection and ranging (LiDAR) tech onboard, it supports map-free urban navigation. GAC Aion demonstrated the RT’s versatility by taking it through a maze of narrow urban streets, rural paths, and stone-paved lanes. The RT handled it all with impressive ease.
The company also underscored the RT’s automated parking system, capable of handling over 300 different types of parking scenarios and claiming a success rate of 99%.
Xiao Yong, vice president of GAC Aion, announced with confidence that the RT’s autonomous driving tech is “the most intuitive for China’s roads,” and positioned the company’s technology among China’s leading intelligent driving systems. Xiao also promised that the smart driving features would be available right at launch.
GAC Aion is offering two versions with advanced autonomous capabilities, priced at RMB 155,800 (USD 21,812) and RMB 165,800 (USD 23,212), aligning with the top-end Mona M03, which also offers urban navigation at the same price.
For launch night, GAC Aion enticed early buyers with a limited-time offer: a RMB 99 (USD 13.9) deposit to secure a RMB 3,000 (USD 420) discount, available for just three hours after the event.
A core difference in tech approaches separates the Aion RT from Mona M03. While the latter relies on a proprietary vision-based system, the RT leverages LiDAR through supplier partnerships.
Packing 27 smart components, including Nvidia’s Orin-X processors, the Aion RT surpasses the Mona M03’s 21-component system, hinting at a higher production cost that may explain GAC Aion’s struggle to match Xpeng’s pricing for the M03.
Despite the price parity, Aion has made a clear bid for value with the RT. However, as an all-electric contender in China’s crowded A-segment sedan market, can it match the runaway success of Mona M03?
The Aion RT stands out, but the market for EVs remains limited
Xiao began the event with a bold announcement: GAC had already secured 30,000 presale orders for the Aion RT.
When its presale price was set at RMB 119,800, many expected a lower starting point than the Mona M03. In the end, though, the final price matched the presale offer.
With Mona M03 orders nearing 100,000, whether the Aion RT can maintain similar momentum after launch remains to be seen.
The new all-electric sedan comes with two range options—520 and 650 kilometers—using GAC’s proprietary “magazine” battery, maxing out at 65 kilowatt-hours. Paired with autonomous driving features, buyers can choose from five configurations.
The 520 km LiDAR model is priced identically to Mona M03’s 580 km extended-range Max version at RMB 155,800, with both models offering high-level autonomous driving.
GAC Aion also introduced a 650 km LiDAR version with an additional 130 km in range, priced at RMB 165,800, adding a RMB 10,000 (USD 1,400) premium.
On the charging front, the RT’s silicon carbide-based 400V platform supports 3C fast-charging, achieving a 200 km charge in ten minutes—a speed the Mona M03 can’t currently match.
While GAC Aion couldn’t undercut the Mona M03’s price, its commitment to value is evident. For the company, the RT represents its pis aller for a hit in this competitive segment.
Three key factors: Design, price, and brand
In the A-segment electric sedan class, the Aion RT meets expectations for both design and price, but it falls short on brand strength.
GAC Aion’s effective B2B strategy has inadvertently turned it into a name associated with ride-hailing, challenging its consumer appeal. Despite RT’s forward-looking design, breaking this perception could be a struggle.
GAC Aion has made attempts to reshape its image, introducing the Hyptec brand to elevate its appeal with features like gullwing doors and sports car aesthetics. However, the results have been limited. Hyptec sold only 2,805 units in October, even with four consecutive months of growth.
While the Aion RT marks a sincere effort, achieving significant sales volume will be challenging, especially with electric vehicle sales growth now slowing.
In the A-segment EV sedan market, only the Mona M03 has shown clear breakout success. Even Xpeng may not have foreseen the M03’s high demand, which led to backorders and delayed deliveries.
Within the Aion RT and Mona M03’s price range, competition is fierce. Models like BYD’s Qin L DM and Seal 06 DM-i, each exceeding 40,000 monthly sales, outperform GAC Aion and Hyptec’s combined totals.
Classic gasoline sedans like the Nissan Sylphy, Volkswagen Lavida, and FAW-Volkswagen’s Sagitar still see strong sales, especially in regions where EV infrastructure is sparse, selling 20,000–30,000 units monthly.
This A-segment has always been the most competitive arena. Each model attracts a set consumer base, making it tough for EVs to establish a unique position.
Nonetheless, the RT’s launch signals Aion’s ambition to rebrand itself, as both Aion and GAC urgently need a new model to reverse current trends.
In March 2023, GAC Aion’s sales topped 40,000 units for the first time, surpassing the combined deliveries of Nio, Xpeng, and Li Auto. However, this growth momentum faded, with monthly global sales stabilizing around the same figure by October 2024.
One reason for the stalled growth is GAC Aion’s slow product cycle. Earlier this year, Gu Huinan, general manager of GAC Aion, noted that the company’s two-year focus on Hyptec delayed any new model releases until the latter half of 2023. With no fresh offerings, GAC Aion leaned on B2B models like the Aion S and Aion Y to sustain its sales.
This year’s standout for GAC Aion has been the V Bawanglong model, which sold nearly 10,000 units in October, signaling a much-needed product refresh. Still, GAC Aion is in urgent need of a breakthrough model to drive both sales and brand confidence. Amid an extended EV price war, falling prices threaten its market share, especially against established players like BYD and newer competitors like Geely Galaxy and the Mona M03.
For GAC Group, finding a hit model is increasingly essential.
In the third quarter, GAC reported RMB 28.23 billion (USD 4 billion) in revenue, down 21.73% year-on-year (YoY), with a net loss of RMB 1.396 billion (USD 195.4 million), a 190.40% decline.
For the nine-month period, the data was even more troubling: RMB 74.04 billion (USD 10.4 billion) in revenue, down 24.18%, with net profit at just RMB 120 million (USD 16.8 million), a 97.34% YoY drop, marking GAC’s worst financial performance since listing.
Sales-wise, GAC has seen YoY declines for nine consecutive months. From January to September, its cumulative sales reached 1.3351 million units, down 25.59% YoY.
Over 60% of GAC’s sales come from GAC Toyota and GAC Honda, but both joint ventures have also suffered over 20% YoY declines, hit hard by aggressive competition that have forced price cuts that weigh heavily on financials.
Once, GAC relied on these profits to support Aion’s growth, allowing it to hit a monthly record of 40,000 sales. But that model no longer holds.
As the competition intensifies, joint ventures face new challenges. BYD’s chairman Wang Chuanfu predicts a drastic drop in joint venture market share from 40% to 10% within 3–5 years.
With domestic brands like BYD leading, Aion must become GAC’s new growth driver for survival in the electric era.
The Aion RT’s launch, with competitive pricing and features, is Aion’s boldest bid. Yet, if it fails, both GAC and Aion risk sinking deeper.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Han Yongchang for 36Kr.