Local distributor loses Australian court battle with China's Xpeng

Federal Court action brought against Xpeng by Australian company TrueEV has ended after the case was dismissed on Thursday, August 20, 2026, meaning a planned October trial won't go ahead.

It means Xpeng’s Australian operations will remain with the factory-backed operation established earlier this year, with former distributor TrueEV no longer staking a claim to local distribution.

A trial scheduled for October 2026 was contingent on TrueEV paying a $1.26 million security bond in two tranches.

On August 12, the Federal Court gave TrueEV a further week to pay the second tranche, but it ultimately failed to do so, bringing the proceedings to an end.

TrueEV introduced Xpeng to Australia in 2024 under a five-year deal to exclusively distribute the brand here, launching the G6 electric SUV – a rival to the Tesla Model Y and Zeekr 7X – and planning to also introduce the X9 electric people mover.

However, on January 1, 2026, Xpeng told TrueEV it would terminate its local exclusivity and commence a “direct factory-backed [distribution] model” under its own company, Xpeng Australia and New Zealand (ANZ).

TrueEV launched legal proceedings against Xpeng ANZ in March, while receivers were appointed in that same month in relation to stock of Xpeng vehicles held by TrueEV Distribution, according to filings with the Australian Securities and Investments Commission (ASIC).

Xpeng ANZ announced its factory-backed distribution on April 1, 2026, with the Chinese brand claiming the factory-backed model would enable its Australian sales and service network to “function much better”.

In May, TrueEV CEO Jason Clarke sent a letter to customers apologising for a lack of communication and assuring them warranty and servicing through local dealers would continue while the legal battle played out.

On Xpeng.com.au, which was still operated by TrueEV at the time, the company published a 'True Facts and Timeline', claiming it had spent more than $60 million establishing the Xpeng brand and its dealer network in Australia.

For consumers, this ends a period in which the brand had two customer-facing operations. The Xpeng.com.au website operated by TrueEV remains online but now redirects to shop.xpeng.com.au, while Xpeng.com/au is Xpeng ANZ's Australian website.

The conclusion of the case also comes after Xpeng confirmed it would honour previous cashback incentives for customers who purchased vehicles through TrueEV before the factory-backed operation commenced.

Xpeng ANZ held what was effectively an Australian relaunch last month, confirming not only the updated G6 SUV but also four new models due here by early next year.

These include the seven-seat X9 electric people mover, set to arrive by the end of September as a rival to the Denza D9, Volkswagen ID. Buzz and Zeekr 009.

It also announced the L03 mid-sized SUV, similar in size to the Toyota bZ4X, and the G9L large SUV, a rival to the Kia EV9 and Volvo EX90 electric SUVs.

The L05 SUV is planned for an Australian launch in early 2027, while the GX SUV, a luxury alternative to the Zeekr 9X, has also been confirmed.

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