Deepal S07 electric SUV launches new car brand in Australia

Not even a howling onshore wind at Bondi could detract from the razzle dazzle of the welcoming party for the latest Chinese brand to call Australia home, Deepal.

Along with executives from state-owned Changan Automobile and counterparts from local importer Inchcape – which also looks after car brands like Subaru and Peugeot – the brains behind the Deepal brand braved the brisk weather to put on dancers, bright lights and smoke machines to announce the arrival of the latest manufacturer of EVs and plug-in hybrids that most have never heard of.

The Deepal name denotes deep blue and “…signifies the endless possibilities that lies at the depths of the ocean and the universe,” according to Mr Shen Xinghua, the CEO of Changan Automobile for the Asia Pacific region.

Deepal only emerged as a brand in 2022 and has confirmed it will start selling the S07 mid-sized SUV in Australia as a rival to the market-leading Tesla Model Y.

First deliveries of the sleekly-designed five-seat SUV are due late in November 2024, with pricing to be confirmed at the Sydney International EV show that kicks off on November 8.

Local Deepal general manager Cormac Cafolla says the brand is “more than just vehicles” and that it will deliver “a really good value proposition”.

It’s a familiar sales pitch mimicked by rival newcomer brands keen to carve a slice of the fast-evolving Aussie market.

But Deepal is adamant it will do things differently.

“It’s about shaking things up and bringing fresh ideas to the market,” he says.

Mr Shen Xinghua adds that “Australia is a key market in Deepal’s global strategy”.

With Europe and the US making it harder to sell Chinese EVs – through both tariff barriers and bans on some tech – it’s clear Australia is an increasingly important market for fledging brands looking to gain a global foothold and prove their worth in a mature automobile market.

As with SUV newcomers such as the Zeekr X, Xpeng G6 and BYD Sealion 7, there’s a long list of standard equipment in the S07.

It includes synthetic leather with orange stitching, heated and ventilated front seats (with memory function for the driver), dual-zone climate controlled ventilation, a heated steering wheel, panoramic sunroof with electric closing shade, inbuilt dashcam, smart key entry, 14-speaker Sony sound system, power tailgate and wireless phone charger with ventilation.

There’s also an augmented reality head-up display and 15.6-inch central infotainment screen that can tilt to either side.

Safety systems include autonomous braking in forward or reverse, blind spot warning, side exit warning, speed sign recognition, lane keep assist and lane change assist.

The S07 is powered by a 160kW/320Nm electric motor driving the rear wheels.

It’s claimed to hit 100km/h in 7.9 seconds and has a 79.97kWh battery (bigger than most rivals) with a 475km range (WLTP).

The lithium-ion battery is a nickel-manganese cobalt (NMC or NCM) chemistry, which goes against the trend towards cheaper-to-manufacture lithium ferrous phosphate (LFP) batteries favoured by many Chinese manufacturers.

The standard wheels are 19-inch alloys or you can option bigger 20s. There’s also a choice of seven metallic colours: white, grey, black, green, blue, yellow and orange.

Deepal will support its cars with a seven-year, 160,000km warranty as well as a separate eight-year, 240,000km warranty on the high voltage battery.

Of course, one crucial piece of the Deepal puzzle is pricing.

With a lot of activity brewing around the $60,000 mark that Tesla all but owns in the EV space, it’s shaping up to be a hard-fought contest between brands that have the enormous challenge of convincing Australians to turn away from the Toyotas, Mazdas, Hyundais and Kias they’ve trusted for years.

Overseas the S07 is priced below the Tesla Model Y (which sells from $55,900 plus on-road costs), suggesting something below $50K is possible here.

However, Cafolla warns that the S07 may not be the bargain some are hoping for.

“We’re not aiming to be the cheapest, we want to offer that value proposition that we feel is right for the Australian consumer,” he says.

Either way, the S07 is only the start of the Deepal journey locally.

“Over the next three years we plan to introduce at least nine high quality NEVs around the world,” says Mr Shen Xinghua.

A selection of concept cars were on display at the Australian launch, including a Tesla Cybertruck-inspired fastback-cum-ute, the Deepal E07, and an adventurous looking off-roader, the Deepal G318.

Cafolla says all are under consideration for Australia but that “we have to make sure that they’re fit and right for the Australian market”.

“We’re exploring and we’re talking to our Chinese team about all of the vehicles here tonight and how we bring them to Australia.”

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