Xpeng Accelerates Global Push with Mona Brand Launch in 2026
Chinese electric vehicle manufacturer Xpeng plans to introduce its mass-market Mona brand in Europe and other international markets in 2026, marking a significant step in its global expansion strategy. The announcement was made by CEO He Xiaopeng during the IAA Mobility auto show in Munich, Germany on September 8, 2025.
Launched in China last year, the Mona brand debuted with the Mona M03 electric coupe, priced aggressively at 119,000 yuan (approximately $17,000), aiming to capture the cost-conscious segment. He confirmed that a variety of Mona models will be rolled out not only in China but also in Europe and other global markets next year. These vehicles are expected to be more affordable compared to Xpeng’s premium offerings like the P7 and G6.
Rapid International Expansion
Since beginning its overseas expansion in 2020 with an entry into Norway, Xpeng has swiftly broadened its presence to include key European markets such as Germany and France. Initially targeting 60 countries and regions by the end of 2025, the company has already exceeded this goal, now operating in more than 60 markets, a sharp increase from just three to five markets two years prior.
At the IAA show, Xpeng showcased the Next P7, an upgraded version of its flagship sedan, underscoring its commitment to the European market. However, the company faces challenges such as the European Union’s tariffs on China-made electric vehicles. To address this, Xpeng is considering local manufacturing in Europe but has yet to finalize a timeline.
Competitive Landscape and Acquisition Strategy
Domestically, Xpeng confronts fierce competition amid a price war with other Chinese EV makers and Tesla. Regulators have intervened to curb excessive competition, known locally as “neijuan” or involution. CEO He Xiaopeng has warned that many Chinese EV companies will not survive the consolidation phase currently underway.
In this context, He revealed that Xpeng is open to acquiring other companies, including electric vehicle manufacturers, to strengthen its market position. The company’s previous acquisition includes the electric car development arm of Chinese ride-hailing firm Didi in 2023.
“If we have the opportunity, then we want to acquire some companies,” He stated. “Manufacturing companies, EV companies are always possible.”
FinOracleAI — Market View
Xpeng’s plan to launch the Mona brand globally enhances its ability to compete in the mass-market EV segment, especially in Europe where affordable EVs are in growing demand. The expansion accelerates Xpeng’s international footprint, but challenges such as EU tariffs and intense competition remain significant risks. The company’s openness to acquisitions could provide strategic advantages, allowing it to consolidate resources and technology.
Impact: positive
