In a widely anticipated move, Changan Automotive is set to take over Australian representation of its Deepal brand, side-lining independent importer-distributor Inchcape Australia.
Changan Automotive has been on a hiring spree in Australia, with multiple recruitment ads for senior roles appearing on LinkedIn during the past several months, as it prepares to launch Down Under, initially with the luxury Avatr brand in 2027, led by the large 07L electric SUV and 06T mid-sized wagon.
That will be followed by the Nevo nameplate, likely led by the Q05 small SUV hybrid and Q06 mid-sized SUV EV (with range-extender EV option).
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State-owned Changan is one of China's biggest automotive groups, of a similar scale to Chery or SAIC, the latter the owner of MG.
Deepal launch in Australia in 2024
Inchcape Australia launched the Deepal brand here in late 2024, bringing the pure-electric S07 SUV to market as a Tesla Model Y rival.
Available in a single grade, priced from $53,900, before on-road costs, the S07 is powered by a single electric motor producing 160kW and 320Nm.
Following local feedback, Inchcape worked with Changan to update and recalibrate the S07's advanced driver assist systems (ADAS) and extended service intervals from 10,000km to 20,000km.
Deepal E07 electric 'multi-truck' is an SUV/ute mash-up
The Deepal E07 electric 'multi-truck' followed a year later, the SUV/ute mash-up priced from $64,900, before on-road costs, for the single-motor rear-wheel drive version, and $73,900 before on-roads for the flagship dual-motor all-wheel drive model.
Unlike conventional SUVs, the E07 has a coupe-like roofline that electrically retracts to reveal a cargo section much like a ute tray. This area only has a 300kg payload, however.
But a big question mark has been hanging over the brand's third model, the entry-level Deepal S05 compact electric SUV.
The S05 has been 'set to arrive in Australia' for some time; initially, the third quarter of 2025, but we're still waiting and the new distribution announcement offers a big clue as to why.
Expect Deepal S05 to arrive sooner rather than later
With Inchcape now side-stepping the investment cost required for a new model introduction, expect the BYD Atto 3 and Kia EV3 rival to land sooner rather than later.
Although the local Deepal website invites pre-orders and requests for more information, local specification is yet to be finalised.
Overseas this car is available as an EV with up to 510km of CLTC range, or a range-extender electric vehicle (REEV) that pairs an electric motor with a 1.5-litre petrol engine that acts as a generator.
Changan arrival spells bad news for Mazda
On a side note, the arrival of Changan spells bad news for Mazda, which has a partnership with the giant manufacturer and relies on it to source its new range of electric cars, including the recently launched Mazda 6e sedan and CX-6e SUV.
Changan versions of these models will likely be cheaper than the Mazdas and more premium Deepal versions on sale in Australia.
For the Deepal handover, in what Changan and Inchcape describe as a "mutual decision" there will be a transition period commencing October 21, 2026 until March 31, 2027, during which time Changan will assume distribution responsibility.
Changan to ensure a smooth transition for the brand
A statement announcing the shift said, "Inchcape Australia and Changan will continue to work collaboratively to ensure a smooth transition for the brand, with a focus on supporting staff, customers, dealers and partners.
"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," it said.
Inchcape proud to establish Deepal in Australia
Commenting on the coming changeover, Inchcape Australasia Managing Director Colin Christie said, "We are proud of what we have achieved alongside Changan in establishing Deepal in Australia and helping build awareness of the brand with customers.
"Through our partnership, we have shared valuable local market expertise and supported Deepal's successful introduction to the Australian market."
Changan Australia Managing Director Bryan Guan added, "On behalf of Changan Australia, we thank Inchcape for its partnership in establishing the Deepal brand in Australia.
"As Deepal enters its next phase in Australia, Changan will manage the transition with transparency, professionalism and respect, ensuring continuity for customers and confidence across the dealer network" he said.