- XPeng wins dismissal of TrueEV’s lawsuit after dealer failed to pay A$1.26 million security for costs.
- XPeng terminated the five-year exclusive deal and moved to direct sales via newly formed XPeng ANZ.
- XPeng ANZ pledges to honor rebates and take over service as it readies four new models for Australia.
The Federal Court of Australia last Thursday dismissed a lawsuit filed by Australian dealer TrueEV against XPeng, according to CarExpert.
The court had previously ordered TrueEV to pay a total of A$1.26 million ($903,000) in security for costs and granted the company a one-week extension on Aug. 12.
TrueEV ultimately failed to pay the second installment by the Aug. 19 deadline, resulting in the cancellation of a trial that had been scheduled for October this year.
In 2024, TrueEV signed a five-year exclusive distribution agreement with XPeng to handle sales and operations for the Chinese EV maker in Australia.
The dealer began selling the XPeng G6 in the country late that year.
Over the course of their two-year partnership, XPeng learned through multiple channels that TrueEV had suffered a funding shortfall and been taken over by its financier.
The dealer had also gone more than a year without purchasing vehicles and failed to fulfill order obligations covering 454 vehicles.
On Jan. 1, 2026, XPeng terminated the exclusive agreement with TrueEV in accordance with the terms of the partnership and shifted to a direct manufacturer-distribution model through XPeng ANZ, its newly established Australian and New Zealand operation.
TrueEV subsequently denied XPeng’s allegations and filed a legal claim in March. An Australian court later rejected the dealer’s application for an injunction.
The latest dismissal over TrueEV’s failure to pay the required security deposit effectively brings the legal dispute over the distribution agreement to a close, at least for now.
TrueEV claims it invested more than $60 million in building its dealership network and establishing XPeng’s brand presence in Australia since signing the agreement, selling more than 2,000 new vehicles in total.
The company sought to pursue legal action over the impact of XPeng’s termination of the exclusive agreement.
The dispute has also raised questions over support for Australian customers who purchased XPeng vehicles through TrueEV.
Since mid-2025, some TrueEV customers have reported problems with customer-service response times and parts availability.
Some buyers also said they had not received a A$5,000 ($3,580) cash rebate promised at the time of purchase.
As the manufacturer’s direct importer, XPeng ANZ has said it is willing to honor rebate entitlements for customers who purchased vehicles through TrueEV and take over vehicle maintenance and after-sales services.
XPeng ANZ effectively relaunched its Australian operations last month. In addition to the updated G6 SUV, the company announced four new models planned for the Australian market from early next year.
They include the seven-seat X9 electric MPV, which is expected to arrive in Australia by the end of September, as well as the L03 midsize SUV and G9L large SUV.
The L05 SUV is scheduled to launch in early 2027.
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