XPeng's New 'Mona' Brand to Offer Budget-Friendly EVs at $20,000

author: FutureCar Staff    

China's XPeng is set to acquire Didi Global's Smart electric car division in a move that would enable the company to introduce a new line of affordable electric vehicles. XPeng plans to launch models with zero emissions and price them at around 150,000 RMB ($20,500). The acquisition, valued at approximately $744 million, will see Didi become a strategic shareholder and assist XPeng in developing these new models, codenamed 'Mona'. The first Mona model is expected to be released next year.

XPeng, known for selling premium EVs, aims to enter the low-budget segment with the Mona brand. This strategic move will not only expand the company's presence in the industry but also boost its sales figures. XPeng's entry into the affordable electric car market comes at a time when competitors like BYD and NIO have already introduced their own budget-friendly models.

The debut product of the Mona brand will be the A-class Smart EV, which will be similar in size to the BYD Qin. Production is scheduled to begin in the second half of 2024, with the car hitting the market in the fall at a price of approximately RMB 150,000 ($20,500). XPeng and Didi Global will collaborate on various aspects such as marketing, financials, insurance, charging infrastructure, ride-hailing services, and international expansion.

To focus on the development of the Mona brand, Didi Global has decided to abandon the Da Vinci project. XPeng will acquire some of the R&D staff and equipment from this project to support the development of Mona. This partnership between XPeng and Didi Global is crucial in the highly competitive Chinese EV market, allowing XPeng to stay competitive and positioning Didi as a player in EV manufacturing.

In the first half of 2023, XPeng sold approximately 41,000 electric cars in China, accounting for nearly 2% of the total EVs sold in the country. In comparison, Tesla sold 294,000 cars during the same period, all of which were manufactured at its Shanghai plant, while BYD accounted for 550,000 units. With the introduction of the Mona brand, XPeng hopes to improve its market performance.

According to Reuters, Didi will gain a 3.25% stake in XPeng worth $474 million through this transaction. If XPeng meets its delivery targets, the deal could be valued at $744 million, with Didi's stake potentially increasing to 5.26%. XPeng plans to produce at least 100,000 Mona cars per year, targeting both retail customers and markets in China and Norway. While there are no immediate plans to enter the United States, XPeng is listed on the New York Stock Exchange.

FutureCar Staff