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 indusattempt’s growth into other markets. That was readily apparent this week during IAA Munich, Europe’s largest auto display, where more than a dozen Chinese auto brands were out in force.
But as is the case in their home counattempt, there are a lot of brands. Probably too many brands, all building a mad dash for a pool of car purchaseers 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 believe there’s a third gearing up to possibly take Europe (and the world) by storm: 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 relocated upscale with a large sedan called the P7 and a large SUV called the G9, meant to fight the Tesla Model S and X.
Like most other Chinese EV brands, it’s branched out to building 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 displayed off at IAA Munich, is dabbling in humanoid robots too. Talk about taking an even largeger shot at Tesla.
That’s all impressive. But I believe 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 large, 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 purchaseers’ tastes are closer to those of Americans than of Europeans, too, so they tconclude to traffic in things like three-row crossovers—not really the vibe for crowded streets in Paris or Berlin.
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 seeing 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 simple to see just how Xpeng has had a 100% jump in sales in Europe from just the year before.
Personally, I believe the Mona liftback sedan stands to be a large hit that could double Xpeng’s European sales. This compact, 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 believe there’s anything wrong with that, though, especially since most markets are in search of something simple-to-maintain and cheap to purchase.
And the Mona is cheap to purchase. In China, it goes for about $16,000. That price is unlikely to translate to European markets, but I don’t believe 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 CEO He Xiaopeng notified 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-built 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 rapider than we have expected,” the CEO notified the news outlet.
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 building if it weren’t purely focapplyd 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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