In a bold move that signals mounting pressure in the electric vehicle market, Chinese automaker Deepal has announced significant price cuts for its S07 electric SUV, bringing the drive-away price to under $50,000.
This aggressive pricing strategy positions the S07 as a compelling alternative to the market-leading Tesla Model Y and reflects the intensifying competition from China’s rapidly expanding EV manufacturers.
Game-Changing Price Point in a Competitive Landscape
Deepal’s decision to slash prices comes amid growing competition in Australia’s mid-sized electric SUV segment, where the Tesla Model Y has long dominated. The newly priced S07 now substantially undercuts Tesla’s entry-level Model Y, which currently retails at $55,900 before on-road costs.
With the price reduction, Deepal is offering a fully-equipped premium electric SUV experience at a price point previously unheard of in this segment.
Industry analysts suggest this move is part of a broader strategy by Chinese manufacturers to gain market share in established EV markets. Deepal, backed by state-owned Changan Automobile, appears determined to challenge Tesla’s dominance by offering comparable features and specifications at a more accessible price point.
“This price adjustment represents a pivotal moment in Australia’s electric vehicle market,” says Martin Reynolds, senior automotive analyst at Electric Future Consulting. “We’re witnessing a fundamental shift where premium electric mobility is becoming accessible at price points comparable to conventional internal combustion vehicles.”
Feature-Rich Package Despite Price Reduction
Despite the aggressive pricing, the Deepal S07 retains its impressive array of features and capabilities. The model boasts a 160kW/320Nm rear-mounted electric motor paired with a generous 79.97kWh ternary lithium battery, delivering a WLTP-rated range of 475 kilometers on a single charge.
The S07’s exterior is characterized by bold styling elements including a sleek, aerodynamic profile and distinctive front fascia. Inside, the cabin features a Tesla-inspired minimalist design with premium materials and a sophisticated aesthetic. The centerpiece of the interior is a 15.6-inch rotating infotainment touchscreen that can tilt left or right by 15 degrees for optimal viewing angles from both the driver and passenger positions.
Technology highlights include an advanced gesture control system that allows occupants to control various vehicle functions with hand movements, and an augmented reality head-up display that projects driving information, navigation directions, and driver assistance data directly onto the windshield. This innovative approach eliminates the need for a traditional instrument cluster, creating a clean, futuristic cockpit environment.
“The S07 demonstrates that price reductions don’t necessarily mean compromising on technology or features,” notes automotive technology expert Dr. Sarah Chen. “Deepal has managed to maintain the vehicle’s premium positioning while significantly improving its value proposition.”
Market Disruption and Tesla’s Response
The timing of Deepal’s price cut is particularly significant as Tesla prepares to launch its refreshed 2025 Model Y in Australia. The updated Tesla is expected to arrive with various enhancements but also a price increase, which could potentially widen the gap between the two competitors even further.
Tesla’s Model Y has enjoyed unprecedented success globally, becoming the world’s best-selling car in 2023 and 2024. However, the brand has faced increasing pressure from Chinese manufacturers introducing compelling alternatives at competitive price points. The Deepal S07 joins other recent market entrants like the Leapmotor C10 (priced from $45,888), the Xpeng G6 (from $54,800), and Geely’s EX5 (starting at $43,490) in challenging Tesla’s market position.
Industry data reveals that Tesla sales have declined significantly in Australia during early 2025, with reports indicating a drop of over 65 percent compared to the same period last year. While multiple factors contribute to this decline, including aging product lineups and increased competition, the rise of affordable Chinese alternatives has undoubtedly played a substantial role.
Tesla is rumored to be developing a more affordable version of the Model Y specifically to counter this threat. According to reports, this new variant—codenamed “E41″—could be manufactured in Shanghai and priced competitively to reclaim market share from Chinese competitors. However, with production reportedly not scheduled until 2026, Tesla may face a challenging period in the interim.
Comprehensive Ownership Package
Beyond the attractive purchase price, Deepal is enhancing the S07’s value proposition with a robust ownership package. The vehicle comes with a seven-year, 160,000-kilometer vehicle warranty and an eight-year, 240,000-kilometer battery warranty, providing long-term peace of mind for buyers.
Additionally, all S07 purchases include 12 months of complimentary public charging through the Evie network, eliminating fuel costs during the first year of ownership. This benefit, combined with the inherent operating cost advantages of electric vehicles, contributes to an exceptionally low total cost of ownership.
Service costs are also competitive, with Deepal confirming a seven-and-a-half year capped-price servicing program totaling $2,981.43 across the period. The service intervals are set at 12 months or 10,000 kilometers after an initial six-month check-up.
“When you factor in the purchase price, charging incentives, and long-term warranty, the S07 presents a compelling case for consumers looking to transition to electric mobility,” says automotive economist Peter Williams. “The total cost equation has shifted dramatically in favor of the consumer.”
Expanding Retail Presence
To support its market offensive, Deepal is rapidly expanding its Australian retail footprint. Initially launching with four showrooms split between Sydney and Melbourne, the brand has confirmed plans to open additional locations in Queensland, South Australia, and Western Australia by the first quarter of 2025.
The company is leveraging Inchcape’s established network in Australia, collaborating with existing Peugeot and Subaru franchises to create a nationwide presence. This approach allows Deepal to quickly establish a service and support infrastructure without the delays and expenses associated with building a dealer network from scratch.
“Our retail strategy is designed to make the S07 accessible to as many Australian consumers as possible,” explains Deepal Australia spokesperson Jessica Liu. “We understand that transitioning to electric requires confidence in both the product and the support network behind it.”
Shifting Consumer Perceptions
The entry of brands like Deepal into the Australian market represents a significant evolution in consumer perceptions regarding Chinese-manufactured vehicles. Once considered inferior alternatives to established Western and Japanese brands, Chinese automakers have made remarkable strides in quality, technology, and design.
Consumer research indicates a growing openness to Chinese electric vehicles, particularly among younger buyers less influenced by traditional brand loyalties. The combination of competitive pricing, advanced technology, and comprehensive warranty coverage is proving particularly attractive to first-time EV purchasers.
“The narrative around Chinese vehicles has changed dramatically in recent years,” observes consumer behavior researcher Dr. Michael Foster. “Electric vehicles represent a reset moment where established legacy advantages are less relevant, and consumers are more willing to consider alternatives based on their merits rather than heritage.”
Industry Implications and Future Outlook
Deepal’s price reduction for the S07 is likely to trigger responses from competitors across the market. Established manufacturers may face pressure to reassess their pricing strategies or accelerate the introduction of more affordable electric options to remain competitive.
The move also highlights the strategic importance of manufacturing scale and supply chain efficiency in the electric vehicle sector. Chinese manufacturers benefit from extensive domestic battery production capacity and well-established component supply networks, enabling competitive pricing that overseas manufacturers may struggle to match.
Looking ahead, industry forecasts suggest the trend toward more affordable electric options will accelerate as battery technology continues to evolve and manufacturing efficiencies improve. For consumers, this competitive landscape promises greater choice and value as electric vehicles transition from premium alternatives to mainstream options.
“We’re witnessing the democratization of electric mobility,” concludes automotive futurist Alexandra Rodriguez. “Price points that were unimaginable just a few years ago are becoming the new normal, and this will fundamentally reshape the automotive landscape over the next decade.”
As Deepal begins deliveries of the newly priced S07, the industry will be watching closely to see how consumers respond and how competitors adjust their strategies in what has become one of the most dynamic and rapidly evolving segments of the automotive market.
Technical Specifications: Deepal S07
- Drivetrain: Single-motor electric (rear-wheel drive)
- Battery Capacity: 79.97kWh
- Battery Chemistry: Ternary lithium
- Power Output: 160kW
- Torque: 320Nm
- Weight (tare): 2073kg
- 0-100km/h (claimed): 7.9 seconds
- Power Consumption (claimed): 18.6kWh/100km
- Claimed Range (WLTP): 475km
- Maximum AC Charging Rate: 11kW
- AC Charging Time: Approximately 8 hours
- Maximum DC Charging Rate: 92kW
- DC Charging (30-80%): 35 minutes
- Dimensions (L/W/H): 4750mm/1930mm/1625mm
- Wheelbase: 2900mm
- Cargo Capacity: 445 liters (rear seats up), 1385 liters (rear seats down), 125 liters (frunk)
The Deepal S07 is currently available for order across Australia, with deliveries commencing immediately for interested customers.