TrueEV, the Australian distributor for Chinese electric vehicle maker Xpeng, has issued a public assurance to customers that after-sales support, warranties, and sales operations remain intact despite an escalating legal dispute with the automaker.
The message comes as the company navigates a complex transition period involving federal court litigation, supply chain disruptions, and a strategic shift by Xpeng toward a direct-to-consumer model in Australia.
A Commitment to Continuity
In a letter dated May 6, 2026, TrueEV Chief Executive Officer Jason Clarke addressed owners and prospective buyers directly, apologizing for the silence surrounding the ongoing legal issues. The court battle became public more than two months prior, leaving many customers uncertain about the status of their vehicles and services.
Clarke explained that operational changes implemented by Xpeng over the past 16 months had “materially impacted” TrueEV’s business, forcing the distributor to seek resolution in the Federal Court. While acknowledging inconveniences related to vehicle supply, parts availability, and processing timelines, Clarke emphasized that core customer services are prioritized.
Key assurances provided in the letter include:
* Warranty Support: Existing warranties will continue to be honored.
* Promotions: Cashback offers are being processed despite current backlogs.
* Service Priority: Customer support and after-sales services remain a primary focus.
“We are doing everything we can to maintain continuity… TrueEV remains fully committed to supporting our customers, partners, and the Xpeng brand in Australia.”
CarExpert confirmed that Xpeng showrooms across the country are continuing to operate normally for both sales and servicing.
The Roots of the Conflict
TrueEV introduced Xpeng to the Australian market in August 2024, launching with the G6 mid-size electric SUV—a direct competitor to the Tesla Model Y and BYD Sealion 7. The distributor quickly built a network of approximately 15 dealerships and nearly 60 service centers, with plans to expand the lineup to include the G9 large SUV and X9 people mover.
However, the partnership fractured in early 2026. On March 4, legal proceedings commenced in the Federal Court of Australia between TrueEV and several Xpeng entities, including Guangzhou Xiaopeng Motors Trading Co Limited and Xpeng Motors Australia Pty Limited (Xpeng ANZ).
The legal pressure has mounted on TrueEV. In late April, the court ordered the distributor to pay just over $1.25 million as security for costs. It remains unclear whether this payment has been made. The next scheduled hearing is set for October 6, 2026.
To manage financial strain earlier this year, TrueEV appointed a receiver to liquidate 197 vehicles, signaling significant operational distress.
Xpeng’s Strategic Pivot
While TrueEV fights for its position in court, Xpeng is actively restructuring its Australian presence. The automaker has established its own local operation, effectively moving away from the traditional distributor model.
Hidesuke Takesue, former Chief Operating Officer of GWM Australia, joined Xpeng Motors Australia as COO in April 2026. This leadership change aligns with a broader strategic announcement from Xpeng in April, which described the move as ushering in a “new era of trust and intelligence.”
According to the automaker, the shift to a direct factory-backed model is designed to ensure their global technology is delivered in its “purest and most efficient form.” This transition suggests that Xpeng intends to bypass third-party distributors in the future, potentially leaving TrueEV’s current network obsolete.
What This Means for Buyers
The situation raises critical questions for the Australian EV market regarding the stability of distributor relationships with overseas manufacturers. For current Xpeng owners, the immediate risk appears low, as TrueEV has vowed to honor warranties and support services. However, prospective buyers may face uncertainty regarding long-term support if the legal dispute results in TrueEV’s exit from the market.
As Xpeng transitions to a direct sales model, the role of existing dealerships remains ambiguous. While operations continue as normal for now, the coming months will determine whether TrueEV can survive the legal challenges or if it will be phased out as Xpeng consolidates control over its Australian operations.
The outcome of this case will likely set a precedent for how Chinese EV manufacturers manage their distribution networks in Australia, balancing local partnership needs with direct corporate control.
