Xpeng Aims for 2026 Global Launch of Mass-Market Mona Brand

Xpeng is accelerating its global ambitions, planning to launch its mass-market Mona brand overseas next year, intensifying competition in the increasingly crowded electric vehicle (EV) landscape. The move pits Xpeng not only against its domestic Chinese rivals, like BYD, but also established global automakers vying for EV market share.

In an exclusive interview, Xpeng CEO He Xiaopeng revealed the company’s aggressive international expansion strategy and, in a notable shift, signaled an openness to strategic acquisitions within the EV sector to bolster its competitive edge.

Launched in China the previous year, the Mona brand debuted with the M03 electric coupe, entering the market with a disruptive price point of approximately $17,000 (119,000 Chinese yuan), making it one of the most affordable EVs in its class. This competitive pricing strategy is key to Xpeng’s overseas ambitions.

He Xiaopeng confirmed the impending launch of Mona-branded vehicles in Europe. A move not previously reported and a strong indication of Xpeng’s commitment to becoming a significant global player. The European push is strategically timed, given the growing demand for affordable EVs.

“In 2026, expect a range of Mona products to launch across Chinese and European markets, and progressively, the rest of the world,” He stated. “By then, the vehicles we launch will be well-honed and exceptionally competitive.”

These Mona models are expected to be priced below existing Xpeng mainstays, such as the P7 and G6, broadening the company’s market appeal and addressing a critical price-sensitive segment within the EV market.

This overseas expansion follows a broader trend of Chinese automakers aggressively targeting international markets, particularly Europe. BYD’s sustained growth in the region highlights the potential for achieving significant market penetration.

The influx of competitively priced Chinese EVs will inevitably intensify competition in Europe, putting pressure on traditional automakers, including Mercedes, BMW, and Volkswagen, who are already investing heavily in their own EV portfolios. The challenge for these established players lies in balancing premium branding with the need to offer competitively priced models to counter the Chinese offensive. It’s a delicate balancing act that will define the future of the European automotive market.

Chinese automakers are expanding into Europe even as Tesla experiences declining sales in the region.

Xpeng initiated its global expansion in 2020 with a focus on Norway and has since extended its reach to include key markets like Germany and France. This initial phase focused on building brand awareness and establishing a distribution network, laying the groundwork for the upcoming Mona launch.

The company aimed to have a presence in 60 countries by the end of 2025, a target that has been surpassed due to accelerated global growth. He Xiaopeng noted that just two years prior, Xpeng operated in only a handful of markets, underscoring the rapid pace of its international expansion. This suggests a highly efficient and adaptable operational model that can scale to meet market demands.

At the IAA Mobility auto show in Munich, Germany, Xpeng showcased the updated Next P7, a flagship model, for the first time in the European market. This move signifies Xpeng’s focus on innovation and its intent to compete with established players in the high-end EV segment. The Next P7’s advanced technology and design features are aimed at attracting discerning European buyers.

However, Xpeng’s European expansion faces challenges, including navigating the European Union’s tariffs on electric vehicles manufactured in China. These tariffs could impact the competitiveness of Xpeng’s vehicles and potentially limit its market share in the region. The tariffs are part of the ongoing trade tensions between the EU and China, adding complexity to Xpeng’s global strategy.

In response to these challenges, Chinese automakers are exploring manufacturing options within Europe. While Xpeng is considering establishing a European manufacturing base, a decision on the timeline has yet to be made. Such a move would not only mitigate the impact of tariffs but also demonstrate a long-term commitment to the European market, potentially strengthening Xpeng’s relationships with local stakeholders.

Domestically, a fierce price war continues among EV manufacturers in China as they fiercely compete for market share. This domestic competition, fueled by government subsidies and a rapidly growing EV market, is driving innovation and efficiency throughout the industry.

Chinese regulators have publicly called for a halt to excessive competition or “neijuan” signaling concerns about the long-term sustainability of intense price discounting.

He Xiaopeng himself has previously predicted that a large number of Chinese automakers will be forced out of business, further consolidating the sector. This Darwinian environment could reshape the industry landscape, creating opportunities for stronger players like Xpeng.

He acknowledges that this collapse is already underway.

In this context, He expressed an openness to potential acquisitions. Xpeng previously acquired the electric car development division of Didi, the Chinese ride-hailing giant, in 2023. This acquisition provided Xpeng with valuable technological assets and a strategic foothold in the mobility services sector.

According to He, Xpeng is open to mergers and acquisitions, including with other electric car manufacturers.

“I think if we have the opportunity, then we want to acquire some companies,” He stated. “For us, it’s a good thing to do. Manufacturing companies and EV companies are always possible targets.” Such a move could allow Xpeng to acquire valuable intellectual property, manufacturing capacity, or market share, accelerating its growth and strengthening its position in the highly competitive global EV market.