XPENG VLA 2.0 & MONA L03 Ready For Global Markets
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On a recent LinkedIn post, XPENG Chairman and CEO He Xiaopeng announced that, with UN/EU regulations approved, VLA 2.0 is “locked in” for global markets in 2027.
With regulations set for L3 to L5 ADAS operation (hands-free to fully autonomous), XPENG models equipped and activated with VLA 2.0 are set to go on sale early next year. However, test vehicles are already racking up miles to feed the AI models. Some lucky people may even get to experience VLA 2.0 prototype vehicles driving themselves on European roads prior to the official launch.
Having been behind the wheel with VLA 2.0 in both Guangzhou in November and Beijing in April, the system impresses with its smooth, human-like intelligent driving. In some ways, it sees better and drives better than I do in sometimes chaotic and scooter-filled Chinese traffic. It also drives better than Tesla FSD in dense traffic and tight spaces. VLA 2.0 has advantages in how its AI model learns and adapts to new traffic patterns, with a lot of onboard effective processing power, which lets it adapt to new environments quickly. I anticipate it will impress on European roads much as it has on Chinese roads. It could become even more impressive if experienced on the vehicles like the MONA L03 that seem well suited for European roads.
While the compact crossover/SUV has been seen testing and in regulatory filings for months, XPENG started releasing images of the MONA L03 ahead of its official July launch. XPENG Managing Director for the UK and Europe Elvis Cheng had previously announced that the MONA L03 will launch in Europe in July. According to MIIT regulatory filings, the model comes with a 183 kW (245 hp) motor and 56 or 69 kWh batteries. It should get decent range from those batteries, given its compact size and a 0.228 drag coefficient. However, range has yet to be announced and we may see some additional powertrain and battery options in the final vehicles in different.
Price also has yet to be announced. However, based on size, specs and the positioning of the MONA M03 sedan, it is likely to be priced below the XPENG G6, which starts at 176,800 RMB, ($26,007 at current exchange rates) in China. That car starts at 43,600 Euros in Germany. If I had to guess, I would assume prices will fall somewhere around 150,000 RMB in China or 36,000 Euros in Germany.
XPENG’s vehicles have tended to be a bit large for European roads, often exceeding 5 m in length. Created by a global design team led by former Ferrari designer JuanMa López, the MONA L03 seems like a good for many in Europe. The MONA L03 comes in at 4650 mm long on a 2850 mm wheelbase. A little shorter than a Model Y but longer than a RAV4. However, the images indicate efficient packaging, with short overhangs and a low floor making the most of its compact footprint.
Overall, the MONA L03 may be the best model in their lineup for the European market. The prospects of the car and glimpses of the prototype attracted a lot of attention and discussion from European press at XPENG media events. It has also recently been spotted testing in Germany. We do not have specific timing for the global sales launch yet, we should know more soon.
XPENG recently began assembly at its third plant outside of China in Malacca, Malaysia. Combined with assembly at Magna Styer in Austria and a plant in Indonesia, XPENG’s manufacturing footprint is growing. In addition, XPENG has reportedly been in talks with partner Volkswagen Group to acquire some of their excess manufacturing capacity in Europe. That deepening partnership could also open the possibility of XPENG connecting with Volkswagen Group’s new Elli V2G service, while Volkswagen could extend VLA 2.0 from its Chinese market ID.UNYX 08 (developed with XPENG) to European market vehicles. XPENG’s growing manufacturing footprint has well positioned for global expansion and can provide resilience in the face of global trade politics.
XPENG’s combination of technology and product has established it as a leading company in China. Many current XPENG drivers in Europe are already big fans of their vehicles. As XPENG extends its technology into global markets with products that seem tailored for overseas roads, I anticipate that fan base will grow substantially.
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