Xpeng Expands Its EV Ambitions in Europe With Affordable Models and Bold Tech

Chinese Automakers Push Into Europe

At the IAA Mobility show in Munich, Europe’s largest auto expo, Chinese brands made a strong impression, with more than a dozen automakers presenting their latest models. While the number of players is high and the European car market has been shrinking in recent years, sales from companies like MG and BYD show that affordable Chinese EVs are finding traction. Among these newcomers, Xpeng is emerging as a serious contender.

Xpeng’s Rise From Startup to Global Player

Founded in the mid-2010s, Xpeng began with the compact G3 SUV and quickly moved upscale with the P7 sedan and G9 SUV, designed to compete with Tesla’s Model S and Model X. Since then, the lineup has expanded to include the X9 minivan, the G6 and G7 crossovers, and most recently, the Mona compact liftback.

Beyond cars, Xpeng positions itself as a tech company, showcasing advanced driver-assistance systems, humanoid robots, and even a flying car concept. Volkswagen has partnered with Xpeng to co-develop software and electrical platforms in China, a collaboration that highlights its credibility.

Why Xpeng Fits European Markets Better

Some Chinese brands, like Nio, focus on luxury EVs priced against German premium cars, limiting their sales to small volumes. By contrast, Xpeng has launched models that are better sized and more affordable for European buyers.

The Xpeng G6 SUV, similar in size to the Tesla Model Y, is priced slightly lower while offering more features and a smoother ride. This positioning has contributed to a 100% increase in Xpeng’s European sales year-over-year.

Meanwhile, the Mona sedan, comparable in size to the Tesla Model 3, could become a breakthrough product. In China, it starts at just $16,000. While European prices will likely be closer to $30,000, it still undercuts Tesla and competes directly with mainstream compact cars like the Toyota Corolla.

Advanced Tech Meets Everyday Value

Xpeng is not only competing on price. Its second-generation P7 sedan boasts an 800-volt electrical system, up to 509 miles (820 km) of range under European testing, and an advanced AI-powered assistant. These are features that Tesla has been slow to update as it shifts focus toward robotaxis.

At the same time, the company is preparing a new extended-range EV system (EREV), first seen in its X9 van, which could help address tariff and import challenges in Europe by offering more flexibility.

Global Outlook and Volkswagen Partnership

Xpeng CEO He Xiaopeng told CNBC that Mona-based vehicles will enter European markets soon, reinforcing the company’s commitment to global expansion. He also noted that the brand’s growth pace is already exceeding internal expectations.

The partnership with Volkswagen not only strengthens Xpeng’s credibility but also ensures it will remain relevant as European consumers demand better and more affordable EVs.

The Bigger Picture

While futuristic projects like flying cars may never reach mass production, Xpeng’s mix of affordable EVs, advanced technology, and strategic partnerships gives it a unique edge. In a market where Tesla’s lineup has grown stagnant and legacy automakers struggle to adapt, Xpeng is positioning itself as a brand to watch in Europe and beyond.

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