Forget BYD! XPeng relaunches in Australia with five new models and the German luxury brands in its crosshairs

XPeng has relaunched in Australia as a factory-backed operation with a promise of five new models within six months, a seven-year warranty and its latest technology arriving in step with China – and it’s made no secret of which brands it’s targeting.

The ambitious Chinese EV maker (no, it’s not alone on that front!) is coming for Mercedes-Benz, BMW, Audi and Tesla with an expanded range of battery electric vehicles as well as EREVs, or extended-range electric vehicles (essentially plug-in hybrids where the engine never drives the wheels and is only used to generate electricity).

“Our brand is perceived as a premium brand,” said Alex Tang, XPeng’s head of international markets, at the Australian relaunch.

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“We have some customers who come from premium brands like Mercedes-Benz, BMW and Audi. And we do have some customers who come from Tesla because we are perceived as the best alternative.”

Tang cited European feedback on the G6 mid-size SUV.

“This is the best alternative to the Tesla Model Y.”

As for leading Chinese brand BYD – now firmly established as one of Australia’s top-selling brands – Tang was blunt.

“We really don’t think BYD is our competitor, not only in China but globally, because we do have a different positioning – not only the brand, but also the products, and the customers are always different.”

The relaunch event – attended by XPeng vice chairman and president Dr Brian Gu and hundreds of other guests including media and dealers – marks the shift to a factory-backed operation from independent distributor TrueEV, and comes with what the company calls its “Ultimate Tech” strategy for Australia and New Zealand, built on three pillars: products, intelligence and experience.

“International customers should not wait years for yesterday’s technology,” said Dr Gu. “Our goal is to bring Australia the latest generation of XPeng products in sync with Chinese speed.”

“In the next six months, we plan to introduce five of our latest AI vehicles to the Australian market. It’s not a one-model launch. It’s a rapid expansion of the XPeng portfolio.”

The rollout starts with the updated G6 mid-size SUV and the new X9 people mover – priced from $89,900 and on sale now – with three more models, including the G9L in November, followed by the L03 (pictured top – known as the Mona L03 in China) and the L05 early in 2027.

The brand has also committed to the GX large SUV, although timing and a local name (Lexus holds the rights to the GX nomenclature) are yet to be confirmed.

For now, the sleek P7 sedan looks like a non-starter given the decline in sedan sales locally.

XPeng ANZ head of marketing Damian Royce said the brand would launch “in sync with China, not years behind”.

Underpinning the relaunch is a renewed focus on after-sales support, addressing what Royce called the key question for any new brand: longevity.

In short, will the brand still be here in a few years?

There’s no shortage of industry pundits predicting the demise of some brands – both new and established – as competition heats up.

“Will they last? Will anyone pick up the phone? How long do I need to wait for parts? We are building XPeng ANZ to answer every one of those questions,” said Royce.

That includes a seven-year, unlimited-kilometre warranty for private owners (seven years/160,000km for commercial use) and an eight-year/160,000km warranty covering the battery and drive units, backed by comprehensive technical support, including Australian-based technicians who can diagnose issues remotely using live vehicle data.

XPeng says it already has 25 showrooms operating, with more on the way, a national parts warehouse with fast delivery through a FedEx partnership, offices in Melbourne, Sydney, Brisbane and Auckland, and 24/7 roadside assistance.

Artificial intelligence sits at the centre of the brand’s pitch – and its competitive advantage. XPeng positions itself as a “physical AI” company spanning cars, humanoid robots, robotaxis and flying cars, and wants to define and lead what it calls the “AI car” segment.

Tang claims only two companies globally have the full-stack autonomous driving technology to compete in it: XPeng and Tesla.

Asked directly whether XPeng wants to outsell Tesla in Australia, Tang didn’t rule it out.

“Maybe, because so far we do have some markets where we outsell Tesla, frankly speaking.”

Subject to local regulations, XPeng aims to launch its VLA 2.0 autonomous driving system in Australia before the end of 2027.

Also planned are XPeng ultra-fast charging hubs – the company claims a 10-80 per cent charge in 12 minutes on its 800V models – an Australian vehicle-to-grid pilot, and range-extender models alongside battery-electric vehicles.

Dr Gu said Australia – roughly the fourth-largest right-hand-drive market in the world – suits XPeng because the brand performs best in developed markets.

“We are doing well in Nordic countries … in Germany, in France. We actually really appeal to customers who appreciate quality, technology and service.”

“We want to be a leader … in terms of mindshare, brand recognition, service quality, and also the level of technology that’s provided to the market.”

There’s nuance in the positioning, though.

Tang stressed XPeng isn’t a niche play, describing the mission as “affordable technology for all” – a premium product aimed at mainstream customers who can stretch to it.

It’s a familiar equation for anyone who watched Tesla reshape the prestige market a decade ago: technology as the new luxury.

Asked how XPeng would convince Australians it was here to stay, Dr Gu pointed to the scale of the commitment.

“We’re not here simply to launch a model or sell some cars,” he said. “We’re investing for the long term.”