With more products coming, XPeng recognises it will need to scale up operations in Australia – in steps that could lead it to take control of operations from independent importer TrueEV.
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XPeng, a new Chinese electric car brand, is looking to secure its foothold in the Australian market with new products and an expansion of back-end operations that could see its cars sold through a direct, factory-owned operation.
At present, XPeng vehicles are imported and distributed locally by independent firm TrueEV, but when asked about the brand's future plans by Drive, XPeng Vice-Chairman and President Dr Brian Gu opened the door to a change of business model.
“In terms of the market approach, we believe we need to do more in Australia,” Dr Gu said.
“We need to invest more, we need to have more teams, we need to have more resources – so we are currently thinking about how do we really improve our initial entry [into the Australian market].
“That may involve some business model adjustments, maybe more of our own team on the ground to really support the marketing, the sales, the services.
“And also, to find a way to add more customer reach with our partners locally.
“Those are the things that we are currently thinking, and potentially implementing them this year.”
If XPeng takes control of local operations from TrueEV, it would be far from the first time a major international car brand has used an independent distributor to test the waters before fully committing to Australia.
Kia, Audi, Ferrari, Chery, and others were at one point sold in Australia through an independent distributor before the brands established a full presence.
XPeng currently only offers the Tesla Model Y-rivalling G6 in Australia, but will expand its line-up with the G9, X9, P7+, and, potentially, G7 over the next 18 months.
The Chinese brand’s target market share is unknown, but given the success of compatriot brands like BYD, MG, and GWM that have cracked the Australian Top 10 sales charts, XPeng could look to replicate that success.
XPeng will soon have 22 outlets around the country, with some Ultra Tune centres also certified for vehicle servicing, helping expand its footprint.
Dr Gu said Australia plays a pivotal role in XPeng’s global plans, and that the local market will receive every new model suitable for its unique requirements.
“I would say we are still emerging [in Australia] with a very small number of stores there,” Dr Gu said.
“[But] we see Australia as another important right-hand-drive market, so every right-hand-drive model that we are launching international will be made available in Australia.
“We see Australia possess many other interesting dynamics that is in line with our current pipeline, for example, we’re introducing a Super Electric Models [or range-extender electric vehicles].
“These products, we believe, will have very good appeal in the Australian market with vast regions and lack of charging facilities.”
A representative for TrueEV said in a written statement to Drive: "XPeng is committed to strengthening its presence in Australia and New Zealand and, as part of that, is exploring a number of strategic initiatives to enhance localisation, customer experience and long-term growth in the region.
"TrueEV continues to support the growth of the XPeng brand in Australia, and both parties remain focused on delivering innovation and value to Australian customers."
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Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
