Chinese electric vehicle brand Deepal will transition from its independent importer to a factory-backed operation by early 2027, amid low sales.

The move follows an earlier statement by importer Inchcape, which also distributes Peugeot, Subaru and Foton vehicles in Australia, that it was "finalising plans" for future Deepal models. The statement was issued a week before the announcement that the distribution partnership would end.

Deepal has recorded low vehicle sales in Australia in 2026, fewer than any other Chinese car brand actively publishing its sales figures.

Inchcape and Changan, Deepal's parent company, announced that they had agreed to "end the distribution partnership", with distribution transferring to an operation owned and managed by Changan. The decision was attributed to "Inchcape's standard approach to portfolio management", which aims to "ensure the right portfolio of brands for the business". Both companies described the change as a "mutual" decision rather than a termination by Changan or Inchcape relinquishing the brand because of its sales performance.

Changan has also announced plans to enter the Australian market with its Nevo and Avatr brands. A Changan Australia spokesperson told a news agency that the "Deepal brand will continue to be sold and supported", although it remains unclear whether Deepal will eventually join the Nevo dealer network.

"Deepal dealers will continue operating as normal throughout the transition period, ensuring uninterrupted sales, service and customer support. Discussions regarding the future dealer network are ongoing, and further updates will be provided in due course, Changan is currently evaluating the optimal retail and distribution model for the Australian market, with further details to be shared as plans are finalised," the spokesperson said.

The transfer of Deepal's distribution operations began on 21st October and will continue until March 31st, 2027. Inchcape confirmed that existing customer arrangements would remain in place during the transition.

"All Deepal sales, servicing, warranty programs, comprehensive logistics, parts, after-sales and customer support will continue with all existing customer orders honoured, customers will also continue to have access to factory-trained technicians, genuine Deepal parts and ongoing servicing support and diagnostic updates throughout the transition period," the company said in a media statement.

The announcement contrasts with Inchcape's statement to the news agency a week earlier, when it indicated that it was preparing the next phase of Deepal's Australian product rollout.

"As discussed, we're currently finalising plans for the next phase of Deepal's product rollout in Australia and are incredibly excited about what's ahead, we expect to have more to share in the coming weeks, including further details on the S05 and S07 line-up, as well as local specifications and powertrain options. While we're not in a position to comment on specific models or timing just yet, we're looking forward to unveiling our plans and sharing a clearer picture of what's next for the brand locally," the spokesperson said recently.

Inchcape said it was "proud of what [it has] achieved alongside Changan in establishing Deepal in Australia". Colin Christie, managing director of Inchcape Australasia, said the partnership had involved sharing local market expertise and supporting Deepal's introduction to the Australian market.

"We continue to focus on ensuring Inchcape has a portfolio of brands aligned with our strategic growth objectives, and I would like to thank Changan for its partnership and wish the brand continued success in the Australian market," Christie said.

Deepal's best-selling model in Australia this year is the S07 mid-size electric SUV, with 610 deliveries. Launched at the end of 2024, it initially carried a list price of AUD 53,900 (US$ 37,800), excluding on-road costs, or approximately AUD 60,000 drive-away.

The price has since been reduced to AUD 47,990 drive-away, with the AUD 1,000 20-inch alloy wheel option now included as standard. Examples fitted with the standard 19-inch wheels are listed as "sold out" on Deepal's website.

The E07, which combines elements of a ute and an SUV, recorded quite a few sales in Australia this year, with prices starting at approximately AUD 70,000 drive-away.