It’s kind of official: China’s cars are here to stay. Geopolitical tensions between China and the rest of the world are still a work in progress, but that isn’t stopping its auto industry’s growth into other markets. That was readily apparent this week during IAA Munich, Europe’s largest auto show, where more than a dozen Chinese auto brands were out in force.
But as is the case in their home country, there are a lot of brands. Probably too many brands, all making a mad dash for a pool of car buyers that’s actually been shrinking in recent years. Still, their progress is palpable, as the growing sales of reasonably priced cars from MG and BYD will attest. But I think there’s a third gearing up to possibly take Europe (and the world) by storm: Xpeng.
New Xpeng P7 at IAA
Photo by: Xpeng
Xpeng is another Chinese new-energy vehicle startup that’s been around since the mid-2010s. The company originally started out with a subcompact SUV called the G3, but then quickly moved upscale with a big sedan called the P7 and a large SUV called the G9, meant to fight the Tesla Model S and X.
2023 Xpeng G9
Like most other Chinese EV brands, it’s branched out to making more EV shapes, like the X9 minivan, G6 and G7 crossovers, and the Mona liftback sedan. The brand is very tech-forward, boasting what it calls some of the best driver assistance semi-autonomous driving tech in the business. That tech is good enough that the Volkswagen Group is trusting Xpeng with the future of its software and electrical architectures in China, much as it’s doing with Rivian in the West.
It also has a flying car that it wants to sell to the Chinese public and, as it showed off at IAA Munich, is dabbling in humanoid robots too. Talk about taking an even bigger shot at Tesla.
Xpeng Humanoid Robot Concept
Photo by: Patrick George
That’s all impressive. But I think the addition of the Mona liftback and G6 SUV is what actually sets Xpeng apart from the rest of the brands entering Europe.
Some Chinese brands are launching with big, luxurious electric sedans and SUVs that cost a lot of money. For example, Nio’s product line is generally very nice and agreeable, but Nio considers itself a luxury brand and prices itself accordingly. The ES6 (EL6) is priced against cars like the Audi Q6 E-tron, and thus Nio’s European sales are in the double digits. Chinese buyers’ tastes are closer to those of Americans than of Europeans, too, so they tend to traffic in things like three-row crossovers—not really the vibe for crowded streets in Paris or Berlin.
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Source: Xpeng
The Xpeng G6, then, is kind of the ideal size: not far off from a Tesla Model Y. Of course, it’s not exactly a cheap car, but from the outside looking in, the G6 feels more competitively priced. In most European markets it’s priced slightly under the Model Y, but it’s better-equipped and boasts a more comfortable ride. Add in the stagnation of Tesla’s product line, and it’s easy to see just how Xpeng has had a 100% jump in sales in Europe from just the year before.
Xpeng Mona M03
Photo by: InsideEVs
Personally, I think the Mona liftback sedan stands to be a big hit that could double Xpeng’s European sales. This small, Model 3-sized sedan undercuts the Tesla in most markets. Technically, it’s a bit more of a basic car compared to the Tesla, trading a BMW-inspired rear wheel drive layout with a multi-link rear suspension, for an economy car like front-wheel-drive and torsion beam. I don’t think there’s anything wrong with that, though, especially since most markets are in search of something easy-to-maintain and cheap to buy.
And the Mona is cheap to buy. In China, it goes for about $16,000. That price is unlikely to translate to European markets, but I don’t think it’s out of the realm of possibility to expect a roughly $30,000 price for a compact sedan. That seems priced right, especially since the Mona sedan is a direct competitor for cars like the Toyota Corolla.
Xpeng Mona M03
Photo by: Xpeng
Xpeng CEO He Xiaopeng told CNBC that Mona products are headed to Europe, which likely means a crossover based on the Mona’s guts is likely in the works. Even if Xpeng can’t circumvent European Chinese-made EV tariff rules, it also has a new EREV system that is coming soon on its X9 van. «The current growth of Xpeng globally is faster than we have expected,” the CEO told the news outlet.
Xpeng P7 (2026)
Photo by: Opel
Plus, its nicer stuff is impressive too. The new second-generation P7 on display at IAA boasts an 800-volt electrical architecture, a quoted range of up to 509 miles (820 km) on the European cycle and an advanced AI assistant. A few outlets have pointed out that it feels like the kind of car Tesla should be making if it weren’t purely focused on Robotaxis.
Maybe that flying taxi will never really take off. But even if it doesn’t, it seems like Xpeng is truly poised to take Europe, and the world, by storm. It marries the things most brands like about Tesla, but in a package that ranges from cheaper to just better. And the Volkswagen partnership ensures it’ll be around for a while. If there’s one less-known Chinese brand to put on your radar, it’s this one.
Contact the author: kevin.williams@insideevs.com
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