XPENG Mona L03 Is Aimed Straight at Tesla Model YXpengIn front of a large assembly of international auto journalists and influencers in Munich's Showpalast July 16, fast-moving Chinese automaker XPENG unveiled its new electric compact crossover electric SUV, aimed directly at the bestselling Tesla Model Y in the European market. The Mona L03 meets the Y in many important measurements, yet will cost tens of thousands of dollars less when it goes on sale in Europe.The base price in Germany will be $40,744, and $43,519 for the version with a range extender. European tariffs of up to 35.3 percent on Chinese EV imports jack up the L03's price, but it is still cheaper in Germany than a base Model Y—which costs $44,549 when a "Tesla Bonus" discount is factored in. Deliveries in China will begin in August, with Europe to follow soon. The L03 will eventually be sold in 65 countries—which explains why it got XPENG's first product launch outside China.Given the current 100 percent US tariff on Chinese-made cars, we're not likely to see the XPENG L03 or its like in the US anytime soon. That's a shame, because its presence would goad every other automaker that sells to Americans to do better, offering more cutting-edge on-board technology at a lower price.AdvertisementAdvertisementXPENG has a lot of competition in the Chinese market, but it clearly sees excellent opportunity up against the higher-priced offerings in Europe. In China, the Mona L03 starts at just $18,289 in base form (after a price reduction), and even the loaded Ultra SE is only $21,500. The company's biggest hurdle, a German journalist told me, is the fact that "everyone in Europe knows Tesla, but nobody knows XPENG." Nonetheless, the company sold more than 45,000 cars in overseas markets in 2025, and 2,991 EVs in Germany alone. In the first half of 2026, it sold 13,522 cars in Europe. To date, it has produced more than 1.2 million cars since founding in 2014.Two L03s on display at the Showpalast.Jim MotavalliMarkus Schrick, XPENG's man in Central Europe, said the company expects 8,000 sales in Germany this year, and 20,000 next year. XPENG has more than 50 dealers in Germany, and hopes for 120 retail locations by the end of this year. "Germany is 60 percent rural, and people in those areas want dealers who are local and speak their language," Schrick said. "We're fond of the traditional dealer system."XPENG let the media crawl all over the L03, but not drive it. At first glance, the fit and finish are impressive, with extremely even shut lines and flawlessly applied paint. The driver faces an 8.8-inch instrument panel, with a 15.6-inch tablet screen that connected wirelessly to Apple CarPlay. There's a big head-up display. The entertainment unit offers 20 speakers and 1,000 watts.We encountered a compact fastback-style SUV designed smartly by a team that included Vice President of Design JuanMa López, whose credits include the Ferrari Purosangue. L03 range varies from 273 miles in standard configuration (with a 58.3 kilowatt-hour battery) to 323 miles in long-range form (with 71.4 kilowatt-hours). It fast-charges from 10 to 80 percent in 18 minutes. Safety matters in Europe, and the L03 gets five stars from ANCAP, CNCAP and Euro NCAP.AdvertisementAdvertisementThe L03, with a wind-cheating 0.228 drag coefficient, looks small on the outside but big inside, with excellent rear-seat head and legroom. The synthetic cloth upholstery is animal-free and the seats comfortable, though Europe won't (at least initially) get the near-flat "zero gravity" reclining feature available in China. In an indication of XPENG's attention to detail, the backs of the front seats have attachment points for tablets and auxiliary reading lights, and a slide-out drawer is nestled in the back seat. There's a large frunk (3.6 cubic feet) and spacious trunk with 19 cubic feet of storage. The folding second row creates 57 cubic feet when down. Virtually none of the L03's mechanical parts are visible without removing panels.The frunk is useful—the L03 has a huge amount of storage.Jim MotavalliGiovanni Grimaldi, L03 product manager for XPENG Europe, said that buyers in Germany and elsewhere on the continent want "smart technology, premium design, practicality and value." He said the target buyers will be between 30 and 45, with dual incomes, in urban and suburban locations.The L03 is available with a single 183-kilowatt (245 horsepower) electric motor or, aimed squarely at Europe, a twin-motor AWD with 400 kilowatts (536 horsepower). Zero to 62 mph times are 4.5, 6.6 and 7.5 seconds, depending on configuration. There's also a version with a small gas-powered Kunpeng range extender yielding 630 miles of range.XPENG calls itself a "physical AI" company, and the car features a camera-based VLA 2.0 system with in-house Turing AI chips. The Ultra SE version gets two such chips, for combined computing power of 1,500 TOPS (versus 750 in other trims). What this means for the driver is impressive Level Two autonomous driving that's adapted for Europe, and includes self-parking and an "incapacitated driver" feature that pulls the car to the side of the road and summons help. XPENG video at the rollout showed Dr. Xianming Liu and founder/CEO He Xiaopeng driving around in what looks like Germany and marveling at the different street signage and motorist etiquette.AdvertisementAdvertisementXPENG is a colorful company, producing not only a range of cars but also robots and a so-called "Land Aircraft Carrier"—something like a six-wheel electric range extender minivan that carries a two-seat, fully electric eVTOL aircraft in its trunk. The van stops, the rear hatch opens, and the drone slides out, unfolding its rotors.The six-wheel Land Aircraft Carrier and its eVTOL. Yes, it fits in the trunk.Jim MotavalliAccording to Tan Wang, cofounder of the XPENG subsidiary Aridge that will produce the flying/driving craft, "2024 is the first year of the low-altitude economy in Asia." The land aircraft carrier will be sold first in China (for approximately $300,000) and then to a second market in the Middle East. Many other companies have tried to market flying cars, but XPENG insists it has found an important market segment.Wang, himself a helicopter pilot, sees applications for urban commuting, aerial patrols, tourism, and emergency response. "It is sharp edged and futuristic," Wang said. "We prefer to call it a new species." He said pilots can learn to fly the joystick-controlled craft in three to five minutes, but longer instruction will probably be available at 200 flying camps around China. The flying van (a weighty item at 4.3 tons, or 9,500 pounds—a bit more than a Hummer EV) will go into production at the end of this year, and reach customers in 2027.The robots (with very human-like movements) were left at home, but a gala dinner featured dancers dressed like them, and the eVTOL. The actual rollout on July 16 was an extravaganza featuring a dozen or more of the L03 cars on site, some demonstrating leisure activities with surfboards, bicycles on rooftop racks, and accessories including duffel bags and soccer balls. There was a personal appearance by German fitness/lifestyle influencer Pamela Reif (70 million followers in China), and an autonomous parking demonstration, which at least for my group was the only ride opportunity in the L03. It seemed very quiet, but we were only moving about five miles an hour.
