Chinese EV maker Xpeng eyes global launch of mass-market Mona brand in 2026

Xpeng, the Chinese electric vehicle manufacturer, is preparing to introduce its budget-friendly Mona brand to international markets in 2026, significantly intensifying competition against both domestic rivals and established global automakers. In a recent interview with CNBC, Xpeng's CEO, He Xiaopeng, revealed that their international growth is accelerating faster than anticipated and hinted at the possibility of acquiring other electric vehicle companies. The Mona brand was launched in China last year, featuring the Mona M03 electric coupe, priced attractively at around 119,000 Chinese yuan, equivalent to just under $17,000. He announced plans to roll out Mona-branded vehicles in Europe in the coming year, marking a pivotal moment in the brand's expansion strategy. "By 2026, expect a diverse range of Mona models to debut in China, Europe, and other regions," He stated, emphasizing the commitment to delivering high-quality vehicles. The introduction of these competitively priced cars is set to challenge traditional automotive giants like Mercedes, BMW, and Volkswagen, as well as other Chinese firms making strides in the European market, such as BYD. This move comes at a time when Tesla is experiencing a downturn in sales across the region. Since initiating its global outreach in 2020, starting in Norway, Xpeng has expanded into various markets, including Germany and France. The company's original goal of establishing a presence in 60 countries by the end of 2025 has already been achieved, with He noting that Xpeng's market footprint has grown from just three to five locations two years ago. During the IAA Mobility auto show in Munich, Xpeng showcased an upgraded version of its flagship P7 model, the Next P7, as part of its European debut. However, the company faces obstacles, including navigating the European Union's tariffs on electric vehicles manufactured in China, which has prompted a consideration of local manufacturing. Domestically, Xpeng is contending with a fierce price war among electric vehicle makers in China, as competition escalates, particularly against Tesla. This has led to regulatory calls for a slowdown in aggressive competitive practices, referred to as "neijuan" or involution. He has previously warned that the industry may see a significant contraction, with only a few companies surviving amidst the turmoil. In light of these challenges, He expressed openness to acquisitions, a strategy that Xpeng has not extensively pursued previously. In 2023, Xpeng acquired the electric vehicle development division of Chinese ride-hailing company Didi and is now looking at further opportunities for expansion. "If the chance arises, we are keen to acquire other companies, especially in the EV sector," He stated, highlighting the potential benefits of such strategic moves.