Xpeng to Bring Its $16,800 Best-Selling EV to Europe by 2026

Xpeng, the renowned Chinese electric vehicle manufacturer, is gearing up to introduce its budget-friendly Mona M03 model to the European market by 2026. This strategic move is part of Xpeng’s broader initiative to cement its presence in the global EV market and cater to the rising demand for affordable electric vehicles.

The Mona M03, introduced in China in 2024, has quickly become a pivotal model for Xpeng, accounting for a significant portion of its sales. With a price tag of just under $16,800, the M03 offers a cost-effective alternative to more expensive models such as Tesla's Model 3, making it an attractive option for budget-conscious consumers. This model, a liftback sedan, measures 4780mm in length, 1896mm in width, and 1445mm in height, with a wheelbase of 2815mm. It boasts a 62.2 kWh battery, offering a range of 600 km on the CLTC cycle, and is powered by a 160 kW motor on the front axle.

At the IAA Mobility show in Munich, Xpeng's CEO He Xiaopeng confirmed the company's plans to accelerate the Mona lineup's international rollout. He emphasized that by 2026, Xpeng expects to launch a variety of Mona products not only in China and Europe but also in other global markets. This ambitious plan underscores Xpeng's confidence in the Mona lineup's potential to capture international markets.

August's sales figures highlighted the Mona M03's growing popularity, with 15,334 units sold globally, contributing to over 40% of Xpeng's total sales. From January to August 2025, the model delivered 117,443 units, showcasing its role as a cornerstone in Xpeng's sales strategy. This success can be attributed to its competitive pricing and robust performance, which have resonated with consumers.

Xpeng is also making strategic moves to deepen its European presence. The company plans to establish its first R&D center in Munich, as part of its 'In Europe, With Europe' strategy. This development not only signifies Xpeng's commitment to the European market but also hints at potential local production to mitigate the impact of EU tariffs on China-made cars.

The Mona project originated from Xpeng's acquisition of Didi Global's EV unit in 2023. Initially intended to be a standalone brand, Mona has since been integrated into Xpeng's lineup, offering a clear multi-tier product range. This includes premium models like the P7 sedan and G6 SUV, alongside the more affordable Mona series. This strategic alignment enables Xpeng to cater to a diverse range of consumer preferences.

In a market characterized by fierce competition and regulatory pressure, Xpeng's strategic partnerships and expansions are crucial. Backed by Volkswagen Group, which holds a 5% stake in the company, Xpeng is also collaborating with German partners to develop EVs for the Chinese market. These alliances are expected to bolster Xpeng's market position and drive innovation in its product offerings.