Changan will take direct control of Deepal’s distribution in Australia, ending a partnership with Inchcape that lasted less than two years. The shift, set for October 21, 2026, marks the latest move in Inchcape’s ongoing portfolio review, which has already seen it drop Citroën and Peugeot from its lineup. Under the agreement, Changan will assume full responsibility for Deepal’s sales, servicing, warranty programs, and logistics, with all existing customer orders honored during a transition period ending March 31, 2027.
Why the Change Happened
Inchcape confirmed the decision as part of its standard portfolio management, citing a need to align its brand mix with strategic growth objectives. The move follows a series of exits from its Australian operations, including Citroën in August 2024 and Peugeot in July 2026. Deepal’s sluggish sales—just 481 deliveries in 2025 and 924 through September 2026—likely factored into the decision, placing it behind newer rivals like Leapmotor and Xpeng.
Deepal’s Australian launch in late 2024 introduced the mid-size S07 electric SUV, followed by the unconventional E07 Multitruck in September 2025. However, the smaller S05 SUV, initially promised for late 2025, never materialized, with its launch repeatedly delayed. Under Changan’s direct control, the S05 is expected to arrive, alongside plug-in hybrid versions of the S05 and S07, which have already debuted in Europe.
Changan’s takeover also clears the way for its other brands to enter the market.
The transition reflects a broader trend in Australia’s automotive market, where established distributors like Inchcape are streamlining their offerings. Unlike a recent high-profile dispute between Xpeng and TrueEV, resolved in Federal Court earlier this year, Changan and Inchcape’s separation has proceeded without public conflict. Changan’s managing director, Bryan Guan, praised Inchcape’s role in building Deepal’s foundation, emphasizing continuity for customers and dealers.
The brand’s E07 Multitruck, a standout in Australia’s niche utility segment, remains paused due to compliance issues, adding another layer of uncertainty. With Changan now in charge, the next phase will test whether direct oversight can turn Deepal’s potential into measurable growth.
Sales data through September 2026 shows Deepal trailing competitors like Leapmotor and Xpeng, both of which have gained traction since entering the market. The brand’s total deliveries, 924 through September, pale in comparison to Geely’s 23,632, despite Geely’s longer presence. This gap shows the challenges of establishing a new electric brand in a crowded and competitive market.
