Deepal E07’s Sales Halted Over ADR Non-Compliance

The Deepal E07 Multitruck, a five-seat electric SUV from Changan’s Deepal brand, has hit a regulatory roadblock in Australia. Sales and deliveries have been paused due to non-compliance with Australian Design Rule (ADR) 34/03, which mandates the inclusion of three rear child restraint anchor points, including one in the middle rear seat position. This regulatory snag affects the installation of child seats, although it has been clarified that the issue is not safety-related.

Since the launch in September 2025, 258 units of the Deepal E07 have been delivered. However, the Australian division confirmed that until compliance work is completed, the vehicle will not be available for sale. Customers have been notified and will receive updates as the company works on resolving the issue.

Industry-Wide Compliance Challenges

Deepal is not alone in facing these compliance challenges. Other manufacturers, including BYD, Tesla, and Honda, have also encountered setbacks due to similar non-compliance with ADR 34/03. The implications for these brands are significant, as regulatory hurdles can stifle sales and affect consumer trust.

By March 2026, Deepal’s compliance issues underscore a growing trend affecting the electric vehicle (EV) market, particularly among Chinese manufacturers. The Australian EV market is projected to continue expanding, with Chinese brands expected to capture 18% of sales, but regulatory compliance remains a critical hurdle for many.

Broader Implications for the EV Market

The regulatory landscape is tightening, and manufacturers are urged to ensure compliance before launching new models. The costs associated with ADR compliance testing can reach between $50,000-$100,000, a significant investment that can prevent costly pauses in sales. For the Deepal E07, which retails at around $60,000 per unit, this could mean a potential revenue loss exceeding $10 million due to the halted sales.

Industry experts emphasize the importance of pre-launch testing of right-hand drive (RHD) prototypes to avoid pitfalls like this. Current owners of the E07 will be offered free retrofits to address the anchor point issue, demonstrating Deepal’s commitment to customer satisfaction despite the setback.

The Future of Deepal in Australia

As the Deepal E07 navigates these regulatory challenges, the company is also looking ahead to its upcoming models, such as the Deepal S05, which has already received full ADR approval for a mid-2026 launch. This hints at a maturing supply chain and a commitment to meeting local compliance standards.

With regulatory scrutiny expected to increase, manufacturers must adapt swiftly to changing requirements. The future of the Deepal E07 and its peers hinges on the ability to meet these standards while maintaining consumer demand in an increasingly competitive market.