Chinese automaker joins wave of affordable EVs

Another Chinese EV brand has entered Australia offering aggressive pricing and advanced technology but fierce competition challenges its success.

Australia’s electric vehicle market is welcoming yet another Chinese addition - Deepal.

A new Chinese EV brand distributed by Inchcape, the parent company of Peugeot and Subaru, will join a competitive line-up of Chinese EVs including BYD, Chery, Leapmotor, Zeekr and Xpeng.

Deepal’s first model for the Australian public is Deepal 07, priced aggressively at $53,900 MLP plus on-road-costs.

The 07 is a midsize SUV designed to compete with popular models like Tesla Model Y and Kia’s EV5.

Orders are now open and delivery is expected to commence from early December 2024 across four new retailers in New South Wales and Victoria.

With a single electric motor on the rear axle offering 160kW of power and 475 kilometres of range (WLTP), fast-charging capabilities, and cutting edge technology, the Deepal 07 has lots to offer.

The car will come with a 7-year/160,000 km warranty and 8-year/240,000 km battery warranty, whichever comes first.

Exterior of the Deepal 07 SUV, priced at $53,900 plus ORCs. Picture: Supplied

While the aggressive price is expected to attract consumers, Deepal’s entry into the market isn’t without controversy.

The brand’s ties with Huawei, China’s technology giant and partner in Deepal’s development with smart car technology and AI-powered features, may concern consumers.

Deepal plans to introduce new models in the future - that could include an SUV.

Huawei was previously banned from Australia’s 5G network over security and privacy issues.

In the United States, the Biden administration recently proposed a ban on Chinese software and hardware.

Deepal 07 is joining a highly saturated market, with more than 70 electric vehicle models on offer.

Australia has become a major target for Chinese automakers due to trade tensions and tariffs imposed by the United States and Europe.

However, the rising number of brands entering the market will lead to fierce competition.

Recently, Mitsubishi chief executive officer Shaun Westcott warned of a “bloodbath” as Australia moves into a period of excess supply.

Westcott believes that we can expect to see heavy discounting as companies try to compete for market share.

Originally published as Chinese automaker joins wave of affordable EVs