Xpeng's Large Electric SUV Is Testing in Australia
A second Xpeng EV has been spotted testing in Australia. Here's what it could mean for novated lease buyers hunting a large electric SUV. Read more.
A large Xpeng electric SUV has been spotted testing at a Tesla Supercharger site in Australia, according to The Driven. It's the second Xpeng model seen on local roads in recent months — and the fact it was charging at a Tesla Supercharger is worth noting, since NACS/Tesla network compatibility has become a serious practical advantage for EV drivers outside major metro areas.
Xpeng is a Chinese EV brand already on sale in Europe and several Asian markets. Their vehicles have a reputation for competitive specs, over-the-air software updates, and pricing that undercuts European equivalents. None of this is confirmed for Australia yet — no local launch date, no pricing, no compliance — but the testing sighting is a reasonable signal that a local release is being evaluated.
What this means for novated lease customers
If Xpeng does launch a large electric SUV in Australia and it's priced under the luxury car tax threshold, it would likely qualify for the federal government's EV FBT exemption — meaning PAYG employees could package it through a novated lease and pay zero fringe benefits tax on the vehicle. That exemption currently applies to battery electric vehicles below the luxury car tax threshold (check the ATO's current threshold before assuming any specific model qualifies).
The catch right now: you can't novate a car that isn't officially on sale in Australia, hasn't passed ADR compliance, and doesn't have a local dealer network. So treat this as a 'watch this space' moment, not a buying signal. What it does reinforce is that the large electric SUV segment is getting genuinely competitive — more options generally means more negotiating leverage, and that flows through to better novated lease residuals and pricing over time.
If you're currently considering a large EV and don't want to wait on an unconfirmed launch, models like the Tesla Model Y (large variant), BYD Sealion 7, or Kia EV6 are already compliant, on-sale, and novatable today. Potential tax savings through the FBT exemption apply to those vehicles right now — no waiting required.
Common questions
Can I novate an Xpeng EV in Australia right now?
Not yet. As of this writing, no Xpeng vehicle has been officially launched for sale in Australia. A novated lease requires a vehicle that is ADR-compliant and available through a local dealer or importer. Keep an eye on this space — if Xpeng launches locally and qualifies under the FBT exemption, it could become a strong novated lease candidate.
What is the EV FBT exemption and would an Xpeng qualify?
The federal government's FBT exemption removes fringe benefits tax on eligible battery electric vehicles used through a novated lease, provided the vehicle is below the luxury car tax threshold. Whether any future Xpeng model qualifies will depend on its local list price and the ATO's rules at the time of purchase — nothing can be confirmed until the car has a local launch and pricing.
Why does charging at a Tesla Supercharger matter?
Tesla's Supercharger network is the most extensive fast-charging network in Australia. If Xpeng vehicles support NACS (the Tesla connector standard), drivers get access to that network — a meaningful real-world advantage over EVs limited to CCS-only infrastructure.
Should I wait for Xpeng before committing to a novated lease?
That depends on your timeline. If you need a new car in the next few months, there are strong FBT-exempt EVs available today. If you can wait 12-24 months, more options will be on the market — but you'd also be forgoing potential tax savings in the meantime. It's worth running the numbers on what's available now.