Australian distributor weighs appeal after case against China's Xpeng dismissed

Sydney-based TrueEV says it's “deeply disappointed” following the dismissal of its case against Xpeng , which was thrown out of Australia’s Federal Court last week.

TrueEV’s case was dismissed on August 20, 2026 , after it failed to provide the full amount of a $1.26 million court-ordered security for costs, which was required for the matter to proceed to a trial scheduled for October 2026.

The legal action was initiated by TrueEV after newly formed Xpeng Australia and New Zealand (Xpeng ANZ) informed the Australian firm on December 31, 2025 that it would terminate its exclusive distribution rights and commence its own factory-backed distribution .

TrueEV objected, having launched Xpeng in Australia in 2024 under a five-year exclusivity agreement that was due to run until at least 2029, and claiming it spent $60 million establishing the brand’s presence and dealer network across the country.

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“TrueEV commenced Federal Court proceedings seeking to have its claims against Xpeng determined at trial,” reads a statement on the TrueEV website.

“Those claims included allegations arising from the termination of TrueEV’s exclusive Australian distribution arrangements and the events that followed.

“The proceeding did not ultimately reach trial. Following TrueEV’s inability to provide a further tranche of court-ordered security for costs, the proceeding was dismissed before TrueEV’s substantive claims could be heard or determined.

“TrueEV remains deeply disappointed that the commercial circumstances which form part of its complaint — including the cessation of vehicle supply and the resulting impact on TrueEV’s ability to trade — also materially affected its capacity to continue funding the litigation.

“No finding was made by the Court on the merits of TrueEV’s substantive allegations against Xpeng. TrueEV is reviewing its available legal options, including appeal and/or further proceedings.”

Receivers were appointed in March 2026 in relation to vehicles owned by TrueEV Distribution, according to filings with the Australian Securities and Investments Commission (ASIC).

TrueEV subsequently closed its Sydney flagship Xpeng Experience Centre in July 2026, having used the site to launch the brand in December 2024.

Following the case's dismissal, Xpeng ANZ released a statement assuring customers of the brand’s long-term commitment to Australia and New Zealand. It also repeated previous pledges to honour customer promotional offers , including a $5000 cashback incentive, issued under TrueEV.

“Xpeng ANZ is now the sole operator of the Xpeng brand in Australian markets and is stepping forward to stand directly behind every Xpeng customer, wherever and whenever they purchased,” the statement said.