Partnership Breakdown! XPeng Motors' Australian dealer enters custodial process. Official response: "Deeply disappointed, I will personally step in to build the dealership network."

Every Daily News reporter | Sun Lei    Every Daily News editor | Pei Jianru

Recently, according to media reports, Xiaopeng Motors’ dealership in Australia has entered administration. Based on a document submitted to the Australian Securities and Investments Commission, an external administrator has taken over Xiaopeng Motors’ Australian dealership TrueEV. However, Xiaopeng Motors has not yet confirmed speculation about whether its newly added direct business in Australia will operate alongside TrueEV, and neither company has commented on the matter.

In response, Xiaopeng Motors told a reporter from the Every Daily News that it feels deeply disappointed about its cooperation with TrueEV. “The partnership has lasted only two years. The other party’s funding chain has broken, and the party has been taken over by the financed party’s administrator. It has not purchased vehicles for more than a year, and has even refused to fulfill orders for 454 cars.” Xiaopeng Motors stated that TrueEV has also had a public conflict with local dealers, and the company believes that mutual trust between the two has completely broken down. Continuing the status quo (or TrueEV’s exclusive agency) will only hinder Xiaopeng Motors’ development in Australia and, at the same time, harm the interests of customers and cooperation partners.

Xiaopeng to add direct distribution business and a network services system in Australia

It is understood that TrueEV was designated as Xiaopeng Motors’ only importer, dealer, and retailer in Australia in May 2024, and officially began vehicle deliveries in August of the same year. The dealership only代理s a single Xiaopeng Motors brand in the Australian market and is not involved with products from other automakers.

At the end of last year, TrueEV announced that 2026 would be an important year for Xiaopeng in Australia. The company said that the facelifted midsize all-electric SUV G6, the brand-new large all-electric SUV G9L, and the large all-electric MPV X9 are all planned to be launched in Australia. However, now that the first quarter has ended, pricing and configuration information for the above new models still has not been announced.

Image source: Every Daily News reporter Kong Zesi (supplied photo)

TrueEV’s CEO Jason Clarke previously acknowledged that the company “often faces some developing issues that need to be resolved.” In an interview with CarExpert last December, he also said, “Inventory supply and parts supply have always been challenges,” and that emerging brands inevitably have issues where “consumer expectations and actual circumstances are out of sync.”

It is understood that TrueEV did not report Xiaopeng Motors’ monthly sales data to the Australian Automotive Industry Association, and the related data also does not appear in VFACTS’ official sales reports. At the same time, it has also not provided sales data to the Australian Electric Vehicles Association, unlike Tesla and Polestar.

An executive engaged in car sales in Australia told the reporter that Xiaopeng’s dealer (TrueEV), due to a lack of industry experience, had insufficient operational and management capability. Combined with weak financial strength, it quickly ran into business difficulties. Ultimately, it was because they lacked an in-depth understanding of the auto industry, their business strategy failed to find the right direction, and this led to store closures.

Regarding the next layout in the Australian market, Xiaopeng stated that it will adopt a dealership model to carry out operations in Australia. Xiaopeng Group’s Australian company (Xiaopeng New Australia) will directly carry out local operations and Xiaopeng Motors’ distribution business in Australia.

The reporter learned that Xiaopeng New Australia will begin building an official dealer network, a customer service system, and a factory-direct logistics system, to provide services to users in major cities across Queensland, Victoria, New South Wales, South Australia, and Western Australia.

It is understood that Xiaopeng has already fully kicked off dealer recruitment in Queensland, Victoria, New South Wales, South Australia, and Western Australia. At the same time, Xiaopeng Australia’s customer service infrastructure is also under construction, with core factory-direct logistics infrastructure being gradually built and improved.

Chinese automakers are accelerating their entry into Australia

Worth noting is that Xiaopeng Motors is not the only one facing similar difficulties. AusEV, the Australian electric vehicle company responsible for introducing the Ford electric pickup F-150 Lightning, has also entered a bankruptcy receivership process. The phenomenon of dealers going bankrupt one after another also reflects, from the side, that the local auto market is facing serious challenges.

The aforementioned executive involved in car sales in Australia told the reporter that the Australian auto market currently has an annual sales volume of around 1.24 million vehicles. “Competition is quite fierce. Every year, there are a few dealers that go out of business.”

Image source: Xiaopeng Motors’ official account

It is understood that Australia’s auto market is one of the most competitive markets globally. More than 70 car brands compete for an annual sales scale of about 1.2 million passenger cars and trucks. By comparison, the United States sells 17 million new vehicles per year, but there are only around 40 brands on sale.

Although Australia’s auto market is highly competitive, Chinese automakers are still collectively moving in. On the one hand, they are competing in the local market; on the other hand, they are also accumulating experience for further global expansion.

Public information shows that in the past two years, around 10 Chinese automakers (or sub-brands) have launched products in Australia’s auto market, and several other Chinese automakers also plan to enter the Australian auto market.

“As the overall market economy trends upward, overall it is relatively good,” said the executive engaged in car sales in Australia. “The Australian auto market is easy to enter and there are no tariffs. For Chinese automakers, it has become increasingly important. Most manufacturers who come over are doing it themselves (meaning they operate it).”

Data from the Federal Chamber of Automotive Industries (FCAI) shows that this year in February, China first became the largest source country for Australian car imports, ending Japan’s long-standing leading position since 1998. That month, Australia sold 22,300 vehicles from China, with a market share of about 25%. The vehicles ranked next came from Japan and Thailand, corresponding to sales of 21,600 and 19,400 vehicles, respectively.

James Voortman, CEO of the Australian Automobile Dealers Association, believes that for Chinese automakers entering the Australian market, the biggest test lies in whether “after-sales service can meet consumer needs.” Auto brands such as Toyota, Ford, Mazda, Kia, and Mitsubishi have invested a great deal of time and money to build relatively comprehensive service and repair networks.

“Whether Chinese auto brands will put in the same level of effort to focus on after-sales service, or whether they will only focus on one goal—bringing as many cars into the Australian market as possible—is a question,” James Voortman said.