Australia’s Federal Court dismissed XPeng’s former distributor TrueEV’s case against the company, ending a legal fight that had consumed the Chinese automaker’s Australian operation for months.
TrueEV’s claim was dismissed after the company failed to pay a court-ordered security bond of AU$1.3 million (US$842,400) by August 20, according to reporting by CarSales.
A judge had required payment in two tranches.
On August 12, the Federal Court granted TrueEV an additional week to deliver the second instalment, however the distributor did not meet the deadline.
The dismissal turned on that failure rather than on the substance of the claim. The court made no findings on TrueEV’s allegations of unconscionable conduct, which remain untested.
The dismissal eliminates the prospect of a trial scheduled for October 2026 and extinguishes TrueEV’s bid to reclaim distribution rights to the XPeng badge in Australia.
XPeng’s wholly owned subsidiary, XPeng Australia and New Zealand — known as XPeng ANZ — now operates as the sole authorized channel for the brand in the country.
Five-Year Deal Unravelled
TrueEV introduced XPeng to Australia in 2024, under a five-year exclusive distribution agreement.
TrueEV launched the G6 mid-size electric SUV — a competitor to the Tesla Model Y and the Zeekr 7X — and had plans to add the X9 seven-seat electric people-mover.
The dealer claimed to have delivered more than 2,000 G6 units by the end of 2025.
Early this year, XPeng notified TrueEV of its intention to terminate the exclusivity arrangement and switch to a direct, factory-backed model.
TrueEV responded by filing legal proceedings in the Federal Court in March, alleging unconscionable conduct.
Receivers were appointed over XPeng vehicle stock held by TrueEV Distribution that same month, according to filings with the Australian Securities and Investments Commission.
In May, TrueEV’s Chief Executive Jason Clarke wrote to customers apologizing for poor communication and assuring them warranty and servicing obligations would continue through local dealers while the dispute played out.
The dealer also published what the company called a “True Facts and Timeline” on the then-TrueEV-operated ‘Xpeng.com.au’ website, where it said more than AU$60 million (US$38.9 million) had been spent establishing the brand and its dealer network in Australia.
XPeng has not confirmed that figure.
XPeng ANZ Takes Full Control
XPeng ANZ formally launched its own operation on April 1, appointing former GWM Australia chief operating officer Hidesuke Takesue to lead the business.
The Guangzhou-based automaker described the launch as “day one” for the brand in Australia rather than a transition from TrueEV.
Australian consumers had faced the unusual situation of two competing XPeng customer-facing operations running simultaneously for several months.
The Federal Court’s dismissal of TrueEV’s case resolves that confusion.
‘Xpeng.com.au’, once operated by TrueEV, now redirects to ‘shop.xpeng.com.au’.
XPeng has confirmed it will honour cashback incentives offered to buyers who purchased vehicles through TrueEV before the switch, according to CarSales.
Distribution Dispute Crushed Sales
The dispute exacted a measurable toll on XPeng’s Australian sales.
Registration data tracked by the Electric Vehicle Council showed the brand recorded 24 registrations across Australia in April, the last month for which the council published a figure for XPeng.
The brand did not appear in subsequent monthly reports, and the council has not said why.
April’s figure represented a 41.5% decline from March and sat well below the 94 units registered in January.
Those 24 registrations placed XPeng at the bottom of the council’s April rankings, below Subaru, Chery and Leapmotor.
Six Models by Early 2027
XPeng ANZ now plans to use the legal clarity to accelerate a product-led recovery.
Last month the subsidiary relaunched the updated G6, and four additional models are due within the next year.
The seven-seat X9 people-mover has already gone on sale.
XPeng expects to add the mid-size Mona L03 SUV and the large five-seat G9L — positioned against the Kia EV9 and Volvo EX90 — before the year-end.
The L05 SUV is slated for early 2027, and the flagship GX luxury SUV, which XPeng positions as an alternative to the Zeekr 9X, has also been confirmed for the market.
Australia’s expansion aligns with XPeng’s broader global push.
XPeng targets 550,000 to 600,000 total vehicle deliveries in 2026 and aims to double overseas shipments from the 45,008 units delivered outside China in 2025.
Denmark recently became the brand’s third overseas market to surpass 10,000 cumulative deliveries, underscoring momentum in markets where distribution has remained stable.
Australia represents a small fraction of that global target.
BYD sold more than 7,800 vehicles in Australia last month across its full range, a figure that covers all powertrains and a different period from XPeng’s April registrations.
XPeng ANZ’s immediate task is converting a six-model lineup into the kind of volumes its Chinese rivals — led by BYD, which sold over 7,800 vehicles in Australia last month — have already built across the country.
