In a spectacular event in Munich, XPENG introduced its latest innovation, the Mona L03, an electric compact crossover SUV that targets the Tesla Model Y. This unveiling marks XPENG’s first product launch outside China, showcasing their ambition to penetrate the European market with a competitive offering.
The Mona L03 is priced at $40,744 in Germany for the base model, with a range extender version available at $43,519. Despite European tariffs on Chinese electric vehicles reaching up to 35.3 percent, the L03 remains more affordable than the Tesla Model Y, which costs $44,549 after discounts. Deliveries are set to begin in China by August, with European sales to follow shortly, as XPENG plans to expand its footprint to 65 countries.
Although the L03 won’t be available in the U.S. due to a 100 percent tariff on Chinese-made cars, its arrival in Europe is expected to challenge other automakers to enhance their offerings. XPENG, despite being relatively unknown in Europe compared to Tesla, has demonstrated its potential by selling over 45,000 vehicles overseas in 2025, with 2,991 units in Germany alone. The company’s growth continues with 13,522 units sold in Europe in the first half of 2026.
Markus Schrick, XPENG’s representative in Central Europe, anticipates 8,000 sales in Germany this year, and 20,000 next year. “Germany is 60 percent rural, and people in those areas want dealers who are local and speak their language,” Schrick emphasized, highlighting XPENG’s commitment to the traditional dealership model.
The L03 features an impressive design with fine details, including a spacious interior with synthetic cloth upholstery and advanced technology like a 15.6-inch tablet screen and Apple CarPlay connectivity. The vehicle’s safety ratings are stellar, earning five stars from ANCAP, CNCAP, and Euro NCAP.
XPENG’s “physical AI” approach is evident in the L03’s advanced features like Level Two autonomous driving, supported by in-house Turing AI chips. The Ultra SE variant boasts 1,500 TOPS computing power, enabling self-parking and emergency assistance features.
In addition to cars, XPENG is venturing into innovative projects with products like the “Land Aircraft Carrier,” a vehicle that integrates a fully electric eVTOL aircraft. According to Tan Wang, cofounder of XPENG subsidiary Aridge, the land aircraft carrier is set to launch in China and the Middle East, aiming to capitalize on the “low-altitude economy” in Asia.
With its diverse range of products and ambitious expansion plans, XPENG is set to make a significant impact in the automotive industry, particularly in Europe. The company’s focus on cutting-edge technology and competitive pricing positions it as a formidable contender against established brands like Tesla.
Original Story at www.autoweek.com