Changan Assumes Direct Factory Control of Deepal in Australia, Ending Inchcape Partnership

Changan is officially taking factory-backed control of its Deepal brand in Australia, mutually terminating its third-party distribution agreement with independent importer Inchcape.

Inchcape stated the mutual separation forms part of a "standard approach to portfolio management" as it continually reviews partnerships to align with strategic growth objectives. However, the move leaves the independent distributor with a significantly shrunken passenger vehicle portfolio, currently holding only the Subaru and Foton brands in its Australian stable. Inchcape previously axed Citroen distribution in August 2024—just one month prior to announcing its Deepal partnership—and subsequently revealed it would drop the Peugeot brand in July 2026.

Sales Performance and Product Pipeline Delays

The transition to a factory-backed operation follows sluggish local sales for Deepal under Inchcape's custodianship. To the end of September 2026, the brand recorded just 924 deliveries. This volume trails other recent Chinese market entrants such as Leapmotor (1,168 units) and Xpeng (1,183 units), and sits significantly behind Geely (23,632 units). In 2025, Deepal reported 481 deliveries after entering industry VFACTS reporting data in May.

Inchcape launched the Deepal brand in Australia in late 2024 with the S07 electric mid-size SUV. This was followed by the E07 Multitruck—an unusual SUV-ute crossover—in September 2025, though deliveries and sales were paused in March 2026 due to an unspecified compliance issue.

Furthermore, the brand's volume-selling S05 small electric SUV has suffered repeated delays. Originally slated for an Australian launch in the second half of 2025, the timeline was pushed to the first half of 2026 and has since lapsed without the vehicle being released. Under Changan's direct management, the S05 is expected to finally launch, alongside potential plug-in hybrid (PHEV) variants of the S05 and S07 that were recently confirmed for the European market.

Changan Group: 2027 Australian Brand Strategy

Deepal's transition aligns with Changan's aggressive Australian expansion strategy, which will see the introduction of two new sister brands—Nevo and Avatr—during 2027. Deepal will be positioned as the middle tier between the mainstream Nevo and premium Avatr marques.

Customer Impact and Continuity

Both companies have confirmed that existing Deepal owners will not be impacted by the corporate restructure. All vehicle sales, warranty programs, parts supply, and servicing operations will continue seamlessly, with customers retaining access to factory-trained technicians, genuine parts, and diagnostic updates throughout the transition period.

Changan Australia managing director Bryan Guan thanked Inchcape for establishing the brand's local foundation, noting that Changan will manage the transition transparently to ensure continuity for both customers and the dealer network.

Notably, this mutual split avoids the acrimonious Federal Court battles seen earlier this year between rival Chinese automaker Xpeng and its former local distributor TrueEV.