XPeng exploring whether to bring 2026 XPeng P7 electric sedan or larger P7+ to Australia to battle Tesla Model 3 and BYD Seal

XPeng offers a wide number of sedans in other markets, but declining demand for vehicles of this type in Australia may rule them out from a local launch.

At the Chinese carmaker’s Australian relaunch event earlier this month, it displayed a left-hand drive P7 electric sedan, among a wealth of other vehicles, and it claims it’s currently assessing whether to launch it locally.

“I think we are looking at the market currently,” said XPeng Vice President and Chairman Dr Brian Gu to CarsGuide.

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“I see a trend that sedans [are] becoming more marginalised as a format. So we are thinking very hard whether we want to bring more sedans to this market.”

As it currently stands, the P7 is only produced in left-hand drive. Unless a right-hand drive version is confirmed for production, this makes an Australian launch virtually impossible.

It has since launched the updated G6 electric mid-size SUV and most recently the X9 electric people mover in Australia.

Another three SUVs are confirmed for a local launch in the next six months. The GX flagship is also confirmed for Australia, however timing hasn’t been locked in yet.

While True EV CEO Jason Clarke previously told CarsGuide the brand was in deliberations on whether to introduce the Mona M03 or the larger P7+ locally, neither are locked in with the factory-backed operation.

It’s worth noting that XPeng has confirmed the P7+ will be offered in Europe and the UK, meaning a right-hand drive version is locked in. This version of the sedan will be produced in Graz, Austria and not China, which hurts its chance of coming here.

Sales of passenger cars, including hatches, sedans and wagons, have been declining in Australia for the last 10 to 15 years.

In 2025 a total of 157,484 passenger cars were sold, which was down 22.6 per cent year-on-year. 733,831 SUVs were sold over the same period, which is almost five times as many.

The best-selling passenger car in Australia in 2025 was the Toyota Corolla. In 2013 and 2014 it had been the best-selling car overall in Australia.

A total of 18,968 examples were sold in 2025, which was down 21.1 per cent year-on-year.

The best-selling car overall in Australia last year was once again the Ford Ranger with a total of 56,555 sales, which was down 9.6 per cent year-on-year.

While a number of electric sedans are offered in Australia, including the Tesla Model 3 and BYD Seal, among others, many are outsold considerably by their SUV counterparts.