Deepal News

Six months ago the heavens were falling as a wave of new Chinese brands approached our shores, with some predicting mass casualties of legacy carmakers.Most of these new brands have arrived, including Deepal, Geely, Jac, XPeng and Zeekr, but have they wreaked the havoc that was predicted?The answer is no. After several months on sale the initial take up has been modest at best.Geely has sold about 500 of its cut-price EX5 electric mid-size SUV, which is a good start but not a knock-out blow to anyone.Jac has had trouble getting its T9 ute on the ground in Australia, but its 650 sales this year aren’t worrying Ford or Toyota.Deepal and XPeng don’t report sales figures yet, but anecdotal evidence suggests they haven’t hit critical mass.Zeekr has moved around 270 examples of its X small electric SUV and luxurious 009 people mover combined.It turns out that just because you are new and from China doesn’t mean you have a cheat code to success in Australia, as some may have thought.As with every other new brand, it will take time and resources to build up a strong following.Take a look at BYD, Chery, GWM and MG. These brands have had to grind it out over years to get a toehold in the local market.GWM and MG have since turned that toehold into a sizeable chunk of market share, like a wily pub veteran pushing elbows out at the bar to settle in, with both now established top 10 selling brands Down Under.It was a similar story for many of these brands that are now awash with sales.Chery launched with its Omoda 5 small SUV and said it would sell 10,000 in the first year … it did not come close.Fast forward a few years and Chery’s beefed-up line-up has accounted for more than 8000 sales through the first four months of this year and is on target to sell more than 20,000 vehicles in 2025. The cut-price Tiggo 4 small SUV leads the charge.BYD has sold more than 11,000 cars through to the start of May this year, but when it first arrived its Atto 3 sold just OK. Its sales really turbocharged years later after it brought in its line-up of plug-in hybrids such as the Sealion 6 SUV, Shark 6 dual-cab ute and the mid-size Sealion 7 electric SUV.Sales of the Sealion 6 and Shark 6 may fall back to earth now that tax incentives for plug-in hybrids have ended.In April, the BYD Sealion 7 electric SUV displaced the Tesla Model Y as the bestselling EV that month, which is only the second time since August 2022 a Tesla hasn’t been the bestselling electric car in a month.The MG ZS and GWM Haval Jolion are the second- and third-bestselling small SUVs, eclipsing rivals such as the Toyota Corolla Cross, Kia Seltos and Mitsubishi ASX.A few more car brands are on the cusp of launching with GAC and Skywell committed to landing here, but as recent history has shown, it’ll be a tough slog to carve out a slice of the Aussie market.But what about the effect on other brands?The only new car brand gone from the local market recently is Citroën, which was on a steep decline long before we knew any of these newcomers existed. Stellantis and its herd of car brands, such as Jeep and Alfa Romeo, look a little unsteady on their feet here, but this is not the result of new Chinese brands.The big boys of the Australian car industry are still doing well.Toyota’s market share has grown this year, compared to the first four months of 2024, as has Mazda, Hyundai and Kia’s. Ford’s is effectively even, too.So your favourite car brand might be around for longer than was predicted not so long ago.

There are signs Chinese brand Deepal is gearing up for a major new model onslaught.

Mazda’s electric car range is about to be hit with a power surge.

Chinese electric car maker BYD is following a secret five-year massive growth plan, which will see it sell half its vehicles overseas by 2030. This will make it a vehicle manufacturer on the same scale as Toyota and Volkswagen, according to a new report.The report by news outlet Reuters cites four people “familiar with the matter” who said BYD’s executives have committed to an ambitious strategy, which will see the electric vehicle brand undergo such an enormous output and sales increase that the company will rival even the world’s largest car manufacturers.BYD has just become the largest selling brand in its home country of China, overtaking Volkswagen last year with 4.27 million units sold.Last year BYD sold 417,204 vehicles overseas and this year the company plans to double that number to 800,000.  The Reuters report revealed BYD met privately with the company's investors to notify them of the growth plan, but it is not known if an actual 2030 predicted sales figure was disclosed.According to the insiders the way that the company wants to be able to achieve their grand plan is by localising production throughout the world. The plan outlines the need to have factories operating in Hungary, Uzbekistan, Brazil and Thailand in order to be able achieve its goal.BYD’s global growth plan will not include the United States, where recent high tariffs against Chinese carmakers have prevented the brand selling its cars there and made the company focus on Europe as the key to its success. Australia, too, will be part of BYD’s plan. Currently Australia doesn’t impose tariffs on Chinese carmakers and this combined with our fairly new and strong interest in electric cars has seen a multitude of Chinese brands arrive here offering what the established mainstream brands could not — very affordable electric cars.  This includes brands such as Geely, Zeekr, MG and Deepal.In April this year alone BYD sold 3207 in Australia, outstripping even Volkswagen with 2076 sales by an enormous margin. And all of BYD’s cars are electric or hybrids.BYD, which started as a battery maker before turning its hand to producing vehicles, arrived in Australia in 2022 with its first EV, the Atto 3 small SUV. The brand soon brought more vehicles to Australia including the Dolphin, Seal, Sealion 6 and Sealion 7 and the Shark 6. 

First we had to get our heads around the multitude of new brands going on sale in Australia, now we’re trying to cope with the massive power outputs of the models as Chinese brand Lynk & Co launches its 900 large SUV with a plug-in hybrid system producing a colossal 540kW.The price is relatively small too with the Range Rover-sized, and also extremely luxurious 900, listing for about $62,000 in China.There is more than a passing resemblance to the Range Rover, with the hulking 900 featuring a set-back cabin, tall windows and rounded rear end. Inside the cabin has a minimal design with a giant media screen spanning most of the dashboard.The 900 has three rows of two seats with the second row able to be turned to face the third. A giant drop-down roof-mounted  30-inch 6K media screen is also available for entertainment. Powering the 900 is a choice of two powertrains. The first is a plug-in hybrid 1.5-litre turbo-petrol four cylinder engine making a 140kW and that in turn is paired to two electric motors: a 160kW unit on the front axle and a 230kW motor at the rear. Total combined output is 530kW.The second is also a plug-in hybrid but it uses a 2.0-litre petrol engine with two electric motors - one at the front making 123kW and a rear motor making 230kW for a combined 540kW.As for battery size the 1.5-litre variant has a 44.85kW unit while the 2.0-litre version has a 52.38kWh pack. According to Lynk & Co both 900 models have a combined range of up to about 1350km (CLTC)The big news really is the price with the 900 listing from $62,000 in China. It's not known if Lynk & Co will launch the 900 in Australia. Currently the company is holding off its arrival into our market until its parent company, Zeekr, establishes itself here.The past two years have seen numerous Chinese car manufacturers enter the Australian market including BYD, Geely, Leapmotor, Deepal and JAC.Zeekr, which is owned by auto giant Geely, recently took control over Lynk & Co and it is expected to arrive in Australia by 2028.Zeekr meanwhile has launched it little X SUV and its 009 people mover and a mid-sized 7X will arrive in 2025, too.  Zeekr's 9X which uses the same foundations as the Lynk & Co 900 may also arrive in Australia.

In 2025 branding means way more than a hot iron mark scorched into a steer’s backside.It’s about a brand’s personality, reputation and your interactions with it. What it says about you. What it delivers. How it makes you feel. A visual identity, a design style… and a million other things.   And there are automotive brands in the Australian new-car market that have strategically built solid brand equity over many decades.Current market leader, Toyota began dipping its corporate toe into global export waters by shipping cars here in the late 1950s. And other Japanese makers like Honda, Mazda and Nissan followed it in conquering initial hesitancy by steadily investing in strong retail networks, pushing product improvement and focusing on a positive customer experience.Ford has built its global brand around everything from the Model T and its revolutionary assembly line to pumped up muscle cars and victory at Le Mans. While here it embedded itself in the local landscape via a manufacturing presence spanning close to a century and regular victory at Mount Panorama.And more recently, relative newcomers like Hyundai and Kia have moved rapidly from cheap and (mostly) cheerful to innovators that repositioned the concept of value and quality in the local market.All of which led to large pockets of ‘rusted on’ brand loyalty. The concept of ‘Ford and Holden families’ started to diminish from the moment the latter departed the scene in 2020 (if not before), but Toyota’s reputation for value, durability and affordable ownership has seen it maintain a legion of never-say-die fans.Same for Ford, Mazda, Mitsubishi and others. But I'd argue a turning point was when, after an initial false start through a private importer in 2013, MG set up as a direct subsidiary in 2017.Great Wall had landed as the first Chinese car brand in the Aussie market in 2009, but MG 2.0 was different. Even if its ‘Since 1924’ positioning stretched credulity, its products were better than expected and pricing was ultra sharp.Sharp enough to encourage budget-focused new-car buyers, even used-car prospects, to give the brand a go.With the introduction of new-generation products in the early 2020s sales took off like a rocket, and it’s here that my ‘That’s a good idea’ theory kicks in.I reckon executives at rival Chinese car brands, keeping an eye on MG’s increasing success Down Under, all had the same ‘good idea’ at the same time. Namely, let’s get into Australia and grab a piece of that action. Hence the subsequent arrival of Chery in 2023, itself a factory-backed restart after an initial import-distribution arrangement broke down back in 2011. Followed by the flood gates opening, with BYD, Deepal, Geely, a ramped up GWM, JAC, LDV, Leapmotor, Smart, Jaecoo, XPeng and Zeekr all jumping in with Aion, Avatar, Jetour, Lynk & Co, Skyworth and others waiting in the wings.Doesn’t matter which category you’re talking about - white goods, sporting equipment, hi-fi - if one fresh competitor enters a mature market, it’s likely to be met with reluctance, even contempt by existing brand loyalists.But if near enough to 20 newcomers blaze into market at the same time, clearly something seismic is going on and it feels like you’d be missing a trick if you didn’t at least investigate the rapidly changing competitive landscape.Give them the benefit of 20/20 hindsight as well as a time machine and it’s not certain all the new brands above would currently be making an Aussie entrance.But multiple triggers have been pulled with retail network deals done, head office staff recruited, parts warehousing set up, service and sales training completed and marketing campaigns launched. So, in a mature market, early movers like MG, Chery and GWM have the advantage and more recent arrivals will need to find a way to win over buyers… fast. And it’s a fair bet the ever-impactful lever marked price will be pulled on a regular basis.Some of the newcomers as well as more than a few existing legacy brands will be forced into a price war. Like it or not, loyalty comes under pressure when the incentive is enticing enough and with a cut-price cage fight likely to take place sooner rather than later not everyone will leave the octagon alive.Stand by for new-car buyers tempted en masse into ‘unbeatable deals’ that mean brand loyalties will be stretched beyond breaking point. The shake out from this looming war of attrition will be huge. 

Deepal's odd ute-SUV priced!

As if we weren’t already inundated with new Chinese utes following last weekend’s Melbourne Motor Show, in which JAC, Foton and MG previewed incoming models, it appears another entrant has its eyes set on the Australian market.

The rapid and seemingly unstoppable expansion of Chinese carmakers is something to behold.But is it too far-fetched to think all cars will be Chinese within the next 20 years? Or is it naive not to see it as a strong possibility?For a long time I’ve thought the emergence of new Chinese cars in Australia and globally was the natural progression of the car industry. New brands morph from alternative fledgling brands to mature and established ones. We saw this with Japanese brands such as Toyota, Mazda, Mitsubishi and Nissan which gained popularity in the 1960s and ’70s before becoming established go-to brands in the 1980s and ’90s as they fought homegrown heroes Ford and Holden for space in Australia's driveways. And it stayed that way until the first decade of the 2000s ticked over.Holden and Ford’s ranges and sales shrank giving way to the Koreans who filled the gap with Hyundai and Kia which have climbed high into the top 10 thanks to an excellent range of SUVs and EVs.They’re now marching towards the only brands that stand in their way - Mitsubishi, Ford, Mazda and Toyota - which, by the way, have about three EVs between them.And given another five years Kia and Hyundai may have been able to topple Toyota from number one. But it might be too late for that. The presence of a large and fast-growing force is creating major uncertainty for the established brands in the Australian market - the rise and rise of Chinese brands. At the end of 2024 there were 12 Chinese brands operating in Australia and this year we’re expecting at least another seven to arrive. To put that in perspective we currently have a total of 50 car brands in Australia and nine are Japanese. By the end of 2025 the Chinese tally could easily be 20 brands or 30 per cent of Australia's brand make up.Several Chinese brands have been in Australia for years and have already done the hard yards. It took MG a couple of attempts to find a foothold but it was the seventh best-selling brand in 2024, while GWM came in at 10th. LDV is further down but still sold more than 16,000 vehicles here last year.The newer Chinese arrivals show huge promise with most of them offering affordable electric vehicles and plug-in hybrids when the established brands have only a handful among them, usually at higher prices.BYD, Zeekr, Leapmotor, Geely, Deepal, XPeng, Smart, JAC, Aion, Chery and Jaecoo will spend 2025 launching a multitude of new vehicles here. BYD will be one to watch having sold more cars here last year than Mercedes-Benz and it will likely enter the top 10 best sellers next year. Geely, which is the ‘Volkswagen of China’ in terms of its size and how many brands it owns, is another to watch.Chinese car manufacturers' speed of production, the development of new platforms and technology, the low cost of batteries, availability of electronics and the breakthroughs being made in charging systems, plus the sheer amount of money and Chinese government support behind them make competition almost impossible for many other brands.It’s almost certain that some established brands will bow out of Australia, unable to compete with Chinese brands. It’s also feasible that within the next decade more than half the Australian market could be made up of Chinese brands. And surely some Chinese brands won’t be able to cut it here and leave, too.Who could survive? Well, time has shown that even the mighty like Holden have fallen if they don’t make the cars people want to buy. The sheer brute force of Chinese brands being able to offer what people want quickly and at a low price, and at an always improving tech level could be too difficult for many other brands to fight off.In an extreme scenario this could lead to a 100 per cent Chinese brand market within 15 years. Sounds far fetched? Well they’re a third of the way there already.  

In reviewing Deepal’s just-released S07 mid-size EV SUV CarsGuide’s Andrew Chesterton called the newcomer’s active (crash-avoidance) safety systems “the single biggest drawback of the Deepal experience” defining them as “the most annoying (and) infuriating” he had ever come across.