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

Xpeng plans to launch its mass-market Mona brand in overseas markets next year in a move that will boost competition with its Chinese rivals and established automakers in the electric vehicle arena.

In a wide-ranging interview with CNBC on Tuesday, Xpeng CEO He Xiaopeng said the company's international expansion is moving faster than he expected and signaled, for the first time, that the company is open to acquiring other electric carmakers.

Xpeng launched the Mona brand in China last year with the debut of the Mona M03 electric coupe. The car was launched with an aggressive starting price of 119,000 Chinese yuan, which is just under $17,000.

Xpeng will launch Mona-branded cars in Europe next year, He told CNBC. This is the first time the launch has been reported.

"In 2026 you can expect a variety of Mona products launched into the Chinese and European markets, as well as in rest of the world," He said, in comments translated by CNBC.

"I believe by then, what we launch will be very proven and very excellent vehicles."

These cars will likely be cheaper than some of Xpeng's higher-end models such as the P7 and G6.

It comes as Chinese automakers are aggressively launching cars outside of China and finding success in Europe where companies like BYD have continued to grow.

Adding even more competitively priced cars into the mix overseas will ramp up competition in markets like Europe where traditional automakers such as Mercedes, BMW and Volkswagen have launched their own electric vehicles to fend off Chinese rivals.

Chinese firms' expansion into Europe comes at a time when Tesla continues to record declining sales in the region.

The Guangzhou-headquartered auto firm began its global expansion in 2020 with Norway and has since launched in other markets including Germany and France.

Xpeng had previously stated a goal of establishing a presence in 60 countries and regions by the end of 2025. He said this goal had been met already, due to faster-than-expected global growth. For reference, the CEO said Xpeng was only present in three to five markets two years ago.

At the IAA Mobility auto show in Munich, Germany, Xpeng brought an upgraded version of the flagship P7 car — the Next P7 — to showcase in Europe for the first time.

Even as Xpeng continues to push overseas, especially in Europe, it faces challenges including dealing with the European Union's tariffs on China-made electric vehicles.

This has led Chinese automakers to explore manufacturing their cars in Europe. Xpeng would like to manufacture in Europe but has not not yet made a decision on the timeline for this, He said.

At home in China, the price war continues as EV makers battle it out for market share. Competition is ramping up between domestic automakers and Tesla.

This has prompted Chinese regulators to call a halt to excessive competition, known colloquially as "neijuan" or involution.

The Xpeng CEO himself has previously warned that only a handful of Chinese carmakers will survive in the coming years as many go out of business.

He said the collapse is already happening.

In this environment, He said he is open to acquisitions, something that the company hasn't done in large quantities to date. In 2023, Xpeng acquired the electric car development business of Chinese ride-hailing firm Didi.

He said Xpeng would be open to acquiring companies, including other electric carmakers.

"I think if we have the opportunity then we want to acquire some companies," He said. "For us it's a good thing to do. Manufacturing companies, EV companies are always possible."