The Mona project will be the start of a second, or even third, brand for Xpeng, which will be predominantly aimed at general customers but also corporate customers, Xpeng's CEO said.

(Image credit: CnEVPost)

After announcing a deal with Chinese ride-hailing giant Didi Global, Xpeng (NYSE: XPEV) chairman and CEO He Xiaopeng said its new brand code-named Mona is the start of more brands to come.

The Mona project will be the start of Xpeng's second, or even third, brand, which will be predominantly for consumers, but also for corporate customers, Mr. He said in a communication session after the deal was announced, according to local media outlet Sina Tech.

Mr. He is very optimistic about the competitiveness of the Mona model and believes that annual sales are expected to exceed 100,000 units, or well above that.

The A-class market is going to have a very large space that can amplify the scale and value of automotive intelligence, he said.

The primary SKU (Stock Keeping Unit) of the Mona model will offer high-level autonomous driving capabilities, with a few SKUs targeting shared mobility, he said.

Through the partnership with Didi, Xpeng aims to build hot-selling models in the RMB 150,000 ($20,595) class and introduce NGP functionality, he said.

Didi has previously been developing the Mona model and it will use many of the capabilities of Xpeng's SEPA 2.0 architecture, Mr. He said, adding that Xpeng will build on Didi's development to complete the development, mass production, and sales of the Mona model.

Earlier today, Xpeng announced that it signed a deal with Didi, agreeing to acquire the assets of the latter's EV development business, with plans to launch a new EV brand under the project code name Mona in 2024.

The project's first model will be an A-class smart electric model to be launched in 2024, and the new model and brand will be differentiated from Xpeng-branded products and the main brand, the company said.

Xpeng's agreement with Didi will establish a performance incentive mechanism based on volume production of Mona and volume targets achieved by Didi, which will be entitled to receive share-based incentives.

In this incentive structure, Xpeng has set two performance target period milestones, both with a maximum number of 180,000 eligible new vehicle deliveries.

($1 = RMB 7.2832)

BREAKING: Xpeng to acquire Didi's EV business, plans to launch new brand codenamed 'Mona' in 2024