XPENG L03 Launches With Strong German Pricing & Shocking Prices In Norway

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Last week, I was invited to the launch of the XPENG L03 in Munich. As we have already written several articles about the L03 (MONA L03 in China) on CleanTechnica, I didn’t want to just repeat information or paraphrase the press release. Overall, the L03 seems somewhat simple on the surface but gets more interesting as you explore the details and implications. Technology and design will be explored in future articles, but the price may be one of the most important aspects of the announcement last week. Beyond simply listing the price and showing a conversion to dollars, the potential impact becomes clear when seen in the context of two of XPENG’s most important European markets.

A Strong Price In Germany

In Germany, the RWD Standard Range starts at €35,600 ($40,688 USD) with 445 km of WLTP range and 7.5s 0-100 km/h. This is a little less than what I guessed at €36,000 and is a competitive price in this market, even if it is significantly more than the price in China. That price increases to €38,600 ($44,116) for the Long Range RWD with 520 km range and 0-100 km in 6.6 seconds. The AWD Performance takes the price to €41,600 ($47,545) while the range drops to 440 km and acceleration time drops to 100 km/h in 4.5s. While all versions include level 2+ ADAS, the Ultra Trim of the AWD includes the most advanced VLA 2.0 intelligent driving system, as well as 20” wheels and some other upgrades for €46,600 ($53,332). Other than some paint options, a detachable trailer hitch with a 1500 kg rating is the only equipment option currently available on all models for €990, although a number of accessories will become available at the dealer.

A PowerX Long Range EREV version of the L03 is also available in Germany (not currently available in Norway), but it really doesn’t have a competitor in this class in Europe. The engine acts purely as a generator, extending total range over 1000 km, while the vehicle shares the RWD powertrain with the BEV version. With 215 km of WLTP battery range, it can easily cover typical European daily driving on electricity. While this range is often exceeded by manufacturers within China, including XPENG, it is a dramatic departure from the relatively short range of PHEVs typical in Europe, especially in this class. The EREV comes in at €38,600 ($44,117) in Germany. As towing tends to dramatically reduce range, this could allow people to operate their vehicle as an EV during the week and then have a vehicle to tow a small camper on the weekends. At this time, an Ultra trim with the top level of VLA 2.0 is not offered in EREV, although we saw prototypes testing in Munich.

For a German Coupe SUV comparison, the VW base ID.5 Pure is priced at €43,360 ($49,557) with RWD and 0-100 km/h in 8.9s. Meanwhile, the top trim AWD GTX with infotainment package comes to €59,355 ($67,838) and accelerates from 0-100 km/h in 5.4s. The GTX is the closest trim to the AWD Performance L03, as Volkswagen doesn’t offer advanced intelligent driving. This is a slightly smaller, slower vehicle with comparatively outdated tech for significantly more money than the XPENG. However, the cost advantage is not limited to BEVs. The base mild hybrid Tiguan is smaller at 4539 mm long, has far less technology on board and accelerates to 100 km/h in 10.6s… and costs more than the base L03 at €39,385.00 ($45,014). The PHEV Tiguan starts at €52,735 ($60,272), but has less power, slower acceleration, less technology and roughly half the electric range compared to the L03 PowerX. The petrol R-Line 195 is still slower than the AWD L03 at 0-100 in 5.9s, but comes in at €64,700 ($73,947), over 50% more than the AWD L03.

Comparing to vehicles from BYD in Germany, the smaller ATTO 3 EVO list price is more expensive at €44,990 ($51,420) in base trim and rises to €50,990 ($58,278) for AWD Excellence trim, although sales bonuses and government incentives can drop the price by as much as €16,000 ($18,287), depending on variant. The larger Sealion 7 list price starts at €49,990 ($57,134) and goes up to €60,990 ($69,707) for Excellence AWD. It should be noted that these models do not have the “God’s Eye” intelligent driving system in Europe or the second-generation blade battery with flash charging. While BYD offers far more battery range in Chinese DM-I models, the closest model in Europe is the slightly larger Seal U Comfort at €42,990 ($49,134). However, that only has 124 km of range, far below the L03’s 215 km. If looking at comparably priced vehicles, rather than relatively comparable vehicles, a Design spec Dolphin, including a panoramic sunroof, lists slightly above the base L03 at €35,990. A FWD ATTO 2 starts at €41,990, a slightly higher price compared to the larger, more powerful AWD Performance L03. However, both the Dolphin and ATTO2 are well below the L03 in specification and equipment.

For the default EV comparison in Germany, a base Model Y offers 534 km of WLTP range, while accelerating 0-100 km/h in 7.2 seconds. That basic trim starts at €39,990 ($45,758). That is comparable to the Long Range RWD L03 at €38,600 ($44,168), but a little slower. While FSD is not available in Germany yet, people must pay a subscription of €99 per month for the future “potential.” Moving up to the AWD Premium Model Y starting at €53,990 ($61,777) range increases to 600 km with a 0-100 km time of 4.8s. That is also slower than the AWD L03 Performance, but Tesla claims more range. The Model Y Performance is both faster and has more range, but at €62,990 ($72,076), it is over 50% more expensive, making it not as relevant for this comparison.

“Shocking” Prices In Norway

Norway is typically not an inexpensive car market, even though it leads Europe in EV adoption. Vehicles tend to be much more expensive than in the US. When I asked someone at XPENG Norway about the L03 before the launch, he said people were likely to be shocked when the price came out. Seeing the price and looking closer at the competition, that assessment seems accurate.

The L03 had a 299,900 NOK price listed at the event, but that appears to include VAT. The pretax price on the Norwegian website starts at 265,933 NOK ($27,600 USD) for the RWD Standard Range. The pre-VAT number is more equivalent to prices in the US, which also tend to be advertised before taxes. In other words, the L03 sold in a European country is less expensive than the lowest pre-tax price for an much less advanced EV in the US, the Chevy Bolt ($28,995). AWD Performance trim increases the price to 332,237 NOK ($34,473), while reducing the 0-100 km/h time to 4.5s. That increases to 372,237 NOK ($38,624) for the AWD Performance Ultra with the top level VLA 2.0 intelligent driving, or 442,275 with taxes and fees. A trailer hitch adds 9900 NOK. Norway, with BEV penetration approaching 100%, currently does not offer the EREV version of the L03.

For a Scandinavian coupe SUV comparison, the RWD Volvo EC40 starts at 566,900 NOK ($58,712), although Volvo lists prices including VAT. Meanwhile the Ultra Twin Engine Performance, capable of a slightly slower 0-100 km/h time of 4.6, starts at 696,900 NOK ($72,175), although current promotions reduce that to a more attractive 565,900 NOK. However, this higher price is for a smaller car (4440 mm long), based on older architecture with less technology in even the top trim, and no option for advanced intelligent driving. Even the lowest priced version is more expensive than the top L03. If XPENG were to ever bring the EREV to Norway, it would be up against the XC60 PHEV at 1,076,355 NOK ($111,474), easily multiple times the price.

In terms of Chinese competition, BYD offers a slightly larger BYD Sealion 7 4X4 starting at 438,325 NOK ($45,435 USD) pre-VAT or 499,900 NOK including VAT. Meanwhile the ATTO 3 EVO 4X4 starts at 354,850 NOK ($36,189) pre-VAT, which is still more expensive than the larger and more advanced AWD Performance L03. Even the subcompact Dolphin comes in above the L03 at 282,782 NOK ($28,839), before VAT.

In Norway, the Model Y starts at 399,990 NOK ($41,462 USD) pre-VAT for the base model or 460,060 NOK, including taxes and fees. That makes it more expensive than the top trim L03, despite having less technology and equipment. Moving up to a “Premium Long Range Four-Wheel Drive” increases the price to 509,990 NOK ($52,917) before VAT, but that is slower and has less equipment than the AWD L03. And those prices do not include the 1090 NOK ($113) monthly subscription needed to access “future self-driving features.” As such, the AWD Model Y is more of a competitor to the standard trim of the AWD L03 than it is to the Ultra trim, which includes full VLA 2.0 intelligent driving capability in the price.

However, there are two main advantages of the Model Y Premium Long Range AWD: it offers 600 km of WLTP range (vs. 440 km for the AWD L03), and it gives up some passenger room for more cargo volume. However, the L03 charges faster and has LFP batteries, meaning it can routinely be charged to 100%. The ternary Tesla charged to 80% (not recommended to charge routinely to 100%) drops the range to 480 km for daily use, closing most of the gap. The impact on longer journeys would also be minimal due to the L03’s faster charging times, particularly in countries like Norway with well-established charging infrastructure. In terms of cargo, the L03 has multiple storage compartments and mounting points throughout the vehicle, which gives it a level of useability that partially offsets the difference in volume. For some buyers, the range and cargo volume advantages of the Tesla are offset by the equipment and technology advantages of the L03. However, having the Tesla costs over 50% more in AWD form makes it difficult to justify the Tesla.

Appetite For Disruption

XPENG is making a bold move in Europe with the L03. Launching in the heart of European auto manufacturing sends a message that they are not afraid. The prices are ahead of the competition in the market for this level of vehicle, and even when compared to vehicles arguably a class below in specification and equipment. Although they were used for examples, the competitive pricing isn’t limited to Germany and Norway. In addition, it isn’t just competitive against EVs but also offering a better vehicle for the price compared to legacy ICE vehicles. Not just less in terms of total cost of ownership or less with government incentives, but less to purchase and own. That changes the dynamic for EV adoption, potentially leading to accelerating penetration rates.

And XPENG is including their latest technology at that low price. While companies like BYD sell mainstream models that represent their previous generation technology in Europe, often vehicles that have been discontinued in China, XPENG is rolling out its most advanced technology globally.

Within China, cars like the new Yuan Plus provide stronger competition. The Chinese market vehicle is larger and much more advanced than the ATTO 3 BYD offers in Europe, with intelligent driving, greater efficiency and flash charging at a price below the L03. Within Europe, BYD charging more for older technology gives the L03 an advantage.

Of course, if protectionism escalates, XPENG will be more likely to need to increase prices. If things like technology sharing requirements are implemented, they may also need to pull back their offering to protect their IP. But XPENG is being bold now by offering their best technology at an attractive price.

Will this disrupt the more cautious approach of other Chinese automakers? If XPENG steps up to offer its most advanced technology at a lower price, other automakers will start feeling pressure to do the same. Could BYD make its current discounts permanent or reduce prices further? If BYD brings mainstream flash charging vehicles to Europe, that could also accelerate the rollout of MW-level charging vehicles currently under development at XPENG. That competition could lead to even more technology hitting the market.

That competition could also lower prices and accelerate the technology rollout at European brands, especially those that collaborate with Chinese partners. As Volvo is owned by Geely, that might lead to more technology coming over from the parent company. As Volkswagen partners with XPENG, we could also see an acceleration of co-developed technology.

With XPENG rolling out the L03 to 65 markets globally this year, the impact will not only be felt in Europe. I could see Norway-like prices appear in Australia and other markets without strong protectionist stances. We could even see the L03 in Canada, which is part of XPENG’s long term plans. Compared to what is available in the US at a similar price point to Norway, regardless of powertrain, the L03 is a dramatically more advanced and fundamentally better vehicle.

In many ways, the L03 is also better than the Model Y, despite the lower price. Much of that has to do with the build quality, design details and technology, which I will explore in future articles. Whether or not this disrupts Tesla’s current trajectory enough to motivate them to start introducing better products at lower prices remains to be seen.

While XPENG is not focused on volume, they are already the top selling Chinese brand in several Scandinavian countries. The L03 and several other new vehicles in the pipeline could solidify that position and potentially overtake some legacy brands as well. They could also grow significantly throughout the rest of Europe and other regions, especially in countries where trade relations stabilize and open up.

The L03 is the shortest vehicle in XPENG’s lineup, but it will likely have the largest impact on their sales globally. It is a compelling offering in the highest volume vehicle segment. The combination of technology and value could also make it the largest disruptor in the European market this year. Depending on how the competition responds, the impact on the EV transition from that disruption could multiply.