XPENG has decided to stop messing about with middlemen. The Chinese electric vehicle maker has announced a new Australian subsidiary, XPENG Motors Australia Pty Ltd, and with it a complete restructuring of how the brand operates in this market. This follows similar moves by other brands like BYD, and Kia years before. It is not uncommon for a toe-dip to turn into a fully-speedo’d dive.
Effective immediately, XPENG ANZ is recruiting dealers across Queensland, Victoria, New South Wales, South Australia, and Western Australia. The company is building customer support infrastructure, factory-backed logistics, and an authorised premium dealer network from scratch. Whether the existing cars and customers from previous arrangements get swept into this new structure remains to be seen.
The language in the press release is careful. “We acknowledge the shifts in the current landscape,” it says, which is corporate-speak for “things went tits-up and we’re cleaning house.” Previous importers have come and gone with varying degrees of success, and XPENG appears to have concluded that if you want something done properly, you do it yourself. Mind you, Citroen had more importers than a banana republic and that didn’t work out so well. A OEM takeover is a wise move aspirational move.
Above: Geely Starray and Which Driveline Is Best for You
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ABOVE: XPENG brand imagery, G6 exterior and interior, X2 flying taxi concept
AI and Software, Not Just Batteries
XPENG’s pitch has always been different from the BYD playbook. Where BYD sells on value and vertical integration, XPENG sells on software. The company positions itself as a tech firm that happens to make cars, rather than a car company that bolts on technology. tesla anyone?
The G6, already on Australian roads, runs XPENG’s XPilot advanced driver assistance system. It charges at 5C, which in practice means 10% to 80% in about 20 minutes if you find a compatible charger. The G9 sits above it as a larger, more luxurious proposition. Both are competitive on specs, but the real question is whether Australian buyers care about AI-driven features when they can buy a BYD Seal for less and a Tesla Model 3 for the charging network.
We’re in a BYD Shark 6 this week, and it is a cracker.
Flying Taxis and Other rifling Distractions
XPENG also makes flying cars. The X2, an eVTOL aircraft that looks like a prop from a mid-budget science fiction film, has been conducting test flights in various markets. The press release mentions “intelligent, AI-driven mobility” and shows imagery of aircraft alongside covered vehicles. Whether flying taxis arrive in Australia before or after we get a functional regional train network is anyone’s guess. I’ll take $50 on “not a chance” thanks Tony.
This is the kind of thing that either makes XPENG look like a visionary company or a distracted one. Tesla promised robotaxis and delivered price cuts. XPENG is promising AI-powered mobility while simultaneously trying to establish basic dealer networks. The priorities seem muddled.
Local Leadership
The new Australian operation is being led by a local team with experience steering other brands to market. The press release doesn’t name names, but promises “deep expertise and a proven track record in the Australian automotive industry.” The contact listed is Damian Royce, which suggests at least some of the team has been poached from established players.
XPENG ANZ is positioning itself as a proper subsidiary with factory backing, not a distributor relationship that can be terminated when the numbers don’t work. That’s worth something. Whether it’s worth enough to compete against BYD’s momentum, Tesla’s network, and the constant arrival of other new Chinese brands remains the interesting question.
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Alan Zurvas is the founder and editor of Gay Car Boys, Australia's leading LGBTQI+ automotive publication. Before launching GCB in 2008, Alan's automotive writing was published in SameSame.com.au and the Star Observer. With over 16 years of hands-on car reviewing experience, Alan brings an honest, irreverent voice to every review — championing value and innovation over brand loyalty.
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