XPENG launches Malaysian plant and eyes Europe with MONA L03 SUV debut

XPENG has started assembling vehicles at its new plant in Malacca, Malaysia. This marks the company’s third production site outside China. The move comes as XPENG prepares to expand its presence in global markets, including Europe. The MONA L03, a compact crossover/SUV, is set to launch in Europe in July. It measures 4650 mm in length with a 2850 mm wheelbase, making it well-suited for European roads. The model will feature a 183 kW (245 hp) motor and battery options of 56 or 69 kWh. Pricing details remain undisclosed, though it is expected to cost less than the XPENG G6.

XPENG is also advancing its autonomous driving technology. VLA 2.0, which has demonstrated smooth, human-like driving in Chinese traffic, will be tested on European roads before its official launch. Models equipped with this system are scheduled to go on sale early next year. Chairman and CEO He Xiaopeng confirmed that VLA 2.0 is confirmed for global markets by 2027.

In addition, XPENG is reportedly in discussions with Volkswagen Group. The talks focus on acquiring excess manufacturing capacity in Europe to support its growth plans. The MONA L03 will arrive in Europe this summer with competitive specifications. VLA 2.0 is set to follow, with testing and sales planned for next year. These developments signal XPENG’s push to strengthen its position in international markets.