The Inchcape Deepal distribution partnership is coming to an end after just over two years, with Chinese automotive manufacturer Changan preparing to take direct control of the Deepal brand in Australia.
Inchcape Australia and Changan Automobile have mutually agreed to end their existing distribution arrangement, with a transition period commencing on 21 October 2026 and concluding on 31 March 2027.
The decision comes as Changan expands its Australian operations and prepares to introduce additional automotive brands during 2027.
The change will leave Inchcape representing Subaru and Foton in Australia, while Deepal moves to a factory-backed distribution structure.
Inchcape Deepal Partnership Ends After Two Years
Inchcape was appointed as Deepal’s Australian distributor in September 2024, overseeing the brand’s initial introduction and dealership development.
Deepal entered the Australian passenger vehicle market with the S07 electric SUV, subsequently adding the E07 crossover-utility vehicle to its range.
The brand’s early sales have been relatively modest compared with several other Chinese manufacturers operating in Australia.
According to reported VFACTS figures, Deepal delivered 924 vehicles during the first nine months of 2026, comprising:
- Deepal S07: 610 deliveries
- Deepal E07: 314 deliveries
The figures highlight the challenges facing new automotive brands attempting to establish a presence in an increasingly competitive Australian market.
Inchcape described the decision to end the partnership as mutual and consistent with its ongoing review of brand representation and business growth objectives.
Neither company has announced that the handover will result in the closure of Deepal’s Australian operations.
Changan Takes Direct Control of Australian Distribution
Under the new arrangement, Changan will assume responsibility for Deepal’s Australian distribution activities.
The transition runs until 31 March 2027, allowing the companies to progressively transfer operational responsibilities.
Both parties have indicated that customer and dealer support will continue during the handover.
This includes:
- Existing customer orders and vehicle deliveries
- Servicing and warranty arrangements
- Parts supply and aftersales support
- Dealer relationships and customer assistance
- Vehicle logistics and distribution operations
For existing Deepal owners, the change is principally one of distribution responsibility rather than the withdrawal of the brand from Australia.
The longer-term structure of Changan’s local dealer network and management operations will become clearer as the transition progresses.
Changan Prepares to Introduce Avatr and Nevo in 2027
The Deepal distribution change forms part of a broader expansion by Changan Automobile in Australia.
The manufacturer is preparing to introduce two additional brands during 2027.
Avatr is Changan’s premium electric vehicle brand, targeting customers seeking higher-end design, technology and vehicle specifications.
Nevo is positioned as a more mainstream electrified vehicle brand, with electric and extended-range electric models planned for international markets.
With Deepal moving under direct manufacturer control, Changan will be positioned to manage all three brands through factory-backed Australian operations.
The approach could provide opportunities to coordinate distribution, technical support, parts supply and dealership development.
However, the companies have not announced that the three brands will operate through a single shared dealership network.
What Does the Change Mean for Inchcape Australia?
Following the Deepal transition, Inchcape’s Australian vehicle distribution portfolio will centre on Subaru and Foton.
Subaru remains an established passenger vehicle brand with a substantial national dealership network.
Foton represents Inchcape’s presence in the commercial vehicle market, including light commercial vehicles and utility vehicles.
The decision to relinquish Deepal follows changes to Inchcape’s Australian brand portfolio as the distributor evaluates its commercial partnerships.
While the Deepal agreement is ending, Inchcape remains an established participant in Australia’s automotive distribution sector.
What Does This Mean for Australia’s Automotive Industry?
The end of the Inchcape Deepal partnership highlights an important development in Australia’s automotive distribution landscape.
Independent distributors have traditionally provided overseas manufacturers with established local infrastructure, dealership relationships, marketing capabilities and aftersales support.
For manufacturers entering a new country, these arrangements can provide an alternative to building an entirely new local operation.
However, as Chinese automotive manufacturers expand internationally, some are choosing to establish their own factory-backed distribution businesses.
Direct representation can give manufacturers greater control over vehicle pricing, product planning, dealer development and customer support.
Independent distribution remains an important model in Australia, and the Deepal decision does not establish that other manufacturers will necessarily follow the same approach.
Nevertheless, the increasing number of Chinese automotive brands entering Australia is creating new questions for importers, distributors and dealership groups.
The Deepal transition illustrates how distribution arrangements can change as manufacturers establish a stronger presence in the Australian market.
For dealerships and automotive professionals, the longer-term implications will depend on how Changan structures its local operations and supports the continued growth of Deepal, Avatr and Nevo.
Sources: Inchcape Australia and Changan distribution announcement, October 2026; AutoTalk Australia, 22 October 2026; CarExpert, 22 October 2026.
