In a dramatic turn of events, a new factory-backed arm of XPeng has taken the reins from previous distributor TrueEV in what appears to be shaping up to be a messy legal saga.
The new factory-backed outlet says it has now established direct operations in Australia, with new local employees, and a new dealer network “effective immediately”.
According to the new entity, this will include new customer support infrastructure and factory-backed logistics to service customers everywhere except Tasmania and the Northern Territory, where the brand is yet to establish a presence.
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The brand reassures buyers that it is “deeply committed to the long-term stability and continuity of the Australian market” and is currently hiring for a range of roles.
Unlike the widely publicised BYD factory-take-over, which appeared to be amicable with its successful distributor EVDirect, the XPeng factory subsidiary is set to lock horns with its previous distributor TrueEV.
TrueEV recently entered external administration after running the local XPeng brand since 2024, despite holding a five-year distribution contract for the brand.
While the distributor has said for a long time that a factory-backed take-over was on the cards and would likely happen sooner than originally anticipated, explosive revelations first published by The Australian claim TrueEV will be suing XPeng for unconscionable conduct after it tore up its distribution agreement on the first of January this year.
According to allegations made by TrueEV, XPeng undermined its operations since 2024, including withholding new product and “sabotaging” its dealer network by changing approval requirements, forcing TrueEV to de-list some dealers and forcing it to remove its service partner, Ultra Tune.
TrueEV alleges this effectively made it impossible for it to sell cars through its already-established network of 15 dealers and 58 service locations.
The case looks set to be dragged through the Federal Court unless a settlement is reached before then, and could create a rocky pathway for the factory backed operation as TrueEV could seek to legally block the company from operating as it pleases until the matter is settled.
The revelations help to explain XPeng’s slow advance in Australia since the well-received arrival of its G6 mid-size SUV as a rival to the ever-popular Tesla Model Y.
Despite the brand (under TrueEV) announcing the G9 large SUV and X9 people mover, as well as hinting at the introduction of the Mona M03 as an ultra-affordable electric fastback, the models have failed to materialise.
It comes at a crucial time for Chinese EV-focused brands which will no doubt seek to capitalise on the current spike in fuel prices to build up their market share.
In contrast to XPeng’s strong start and slow follow-up, a rocky start for its direct Zeekr rival with its niche X small SUV and 009 people mover has been very successfully followed-up by its 7X mid-size SUV, with the brand building hype for what should be its next product, the 8X plug-in hybrid large SUV.
Stay tuned for more on developments for XPeng’s Australian operations.
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