Xpeng's Plans for Global Launch of Budget EV Mona by 2026

Xpeng is gearing up to introduce its affordable Mona electric vehicle line-up to international markets as early as next year, intensifying competition with both domestic Chinese and established global car manufacturers in the EV sector.

During a comprehensive dialogue with CNBC recently, CEO He Xiaopeng highlighted that Xpeng's overseas expansion is progressing swifter than anticipated. He also revealed for the first time that the company is considering acquiring other EV producers.

The Mona brand, launched by Xpeng in China last year, debuted with a competitive starting price of 119,000 yuan, approximately $17,000 USD.

According to He, Xpeng plans to introduce Mona-branded vehicles in Europe next year, marking the venture's first official acknowledgment.

"By 2026, expect to see a range of Mona offerings in both Chinese and European markets, and other areas globally," He affirmed in statements translated by CNBC.

"We foresee these being mature, high-quality vehicles upon launch."

These vehicles are anticipated to be more budget-friendly compared to Xpeng’s premium models like the P7 and G6.

Chinese automotive brands are increasingly venturing beyond domestic bounds, gaining traction in Europe where companies like BYD are continuously expanding.

With the introduction of more competitively priced EVs overseas, the existing competitive atmosphere in places like Europe—with traditional car manufacturers like Mercedes venturing into EVs against Chinese challengers—will further heat up.

Accelerating International Presence

Headquartered in Guangzhou, Xpeng began its global expansion journey in 2020, launching in Norway, then subsequently marking its presence in Germany and France.

Originally aspiring to establish itself in 60 nations and regions by 2025's end, Xpeng has surprised by reaching this milestone earlier due to unexpectedly rapid growth. He noted that just two years prior, Xpeng was operating in only three to five regions.

During the IAA Mobility automotive exhibition held in Munich, Germany, Xpeng showcased an enhanced version of its leading model, the Next P7, marking its European debut appearance.

As Xpeng enhances its European focus, it contends with challenges such as the EU's tariffs on Chinese-made electric vehicles.

This has compelled Chinese automakers, including Xpeng, to contemplate manufacturing within Europe, though a decision on this remains pending, He stated.

Potential for Acquisitions

Back in China, an ongoing price war among EV manufacturers fiercely battles for market allocation. The term "neijuan," or involution, has been used to identify these intense competitive dynamics.

In response to the domestic market's pressures, the Xpeng CEO has previously voiced concerns that only a limited number of Chinese EV companies will persist as many are likely to fail.

Acknowledging ongoing challenges, He admitted openness to acquiring, a strategy largely untapped by Xpeng thus far. Notably, in 2023, Xpeng acquired specific assets from the Chinese ride-hailing company Didi.

He expressed interest in acquisitions, inclusive of other EV manufacturers, underscoring, "If the opportunity arises, we are inclined to acquire certain businesses. For us, it's a beneficial step forward. Manufacturers of EVs are definitively within consideration."