XPeng goes it alone in Australia as distributor dispute heads to court
XPeng has formally launched its own Australian operation, promising a direct factory-backed dealer network across five states, as a legal battle with its former distributor TrueEV heads toward an October trial.
Rob Leigh
XPeng is bypassing its troubled Australian distributor and setting up shop directly, announcing factory-backed operations through XPeng Motors Australia Pty Ltd effective immediately.
The Chinese EV brand says it has appointed a local senior executive team and is actively recruiting dealers across Queensland, Victoria, New South Wales, South Australia and Western Australia. No launch date has been confirmed.
The move comes as XPeng and its former sole distributor TrueEV head toward a Federal Court trial in October. TrueEV, which entered administration last month, alleges XPeng systematically undermined its operations after relying on it to build the brand locally, then terminated their exclusive agreement on January 1st 2026, less than two years into a five-year deal.
TrueEV claims XPeng refused to supply new models unless the Chinese company could establish a parallel distribution channel, unilaterally changed dealer approval requirements, and directly approached TrueEV's own franchised dealers and finance partners to cut ties with the distributor. It argues the conduct breaches Australian Consumer Law and the Franchising Code of Conduct.
XPeng has countered that its sales and service network would perform better under its own local arm. It hasn't addressed the specific allegations publicly.
TrueEV's administrator is currently managing 197 vehicles across multiple sites. The distributor claimed to have delivered over 2,000 XPeng vehicles in Australia since launching the G6 mid-size SUV in August 2024, though it never reported monthly sales to VFACTS.
It remains unclear whether TrueEV's existing showrooms will continue operating alongside the new factory-backed network or what happens to current XPeng owners waiting on parts and cashback incentives.
XPeng has confirmed dealer recruitment is underway and that customer support, servicing and aftersales infrastructure will be in place before its official launch. Former GWM Australia COO Hidesuke Takesue has been linked to the local leadership team, though no formal announcement has been made.
Models previously announced for Australia including an updated G6, the G9L large SUV and the X9 people mover, are all in limbo until the new structure is confirmed.
For buyers, the short answer is to hold off until XPeng confirms pricing, dealers and on-sale dates through its own channels.
