European Commission investigators will inspect the facilities of several Chinese electric vehicle makers in the coming weeks as part of an investigation into whether they unfairly benefit from subsidies from China, three people involved in the process said.
Planned visits to BYD, Geely and SAIC
The investigation, launched in October and expected to last 13 months, will determine whether punitive tariffs should be imposed to protect European electric vehicle manufacturers as Chinese models typically sell 20% cheaper.
Inspectors will visit BYD, Geely and SAIC (MG brand), two sources said. Non-Chinese brands that produce in China, such as Tesla (Model 3 and part of the Model Y), Renault (Dacia Spring) and BMW (iX3), will not be subject to the investigation, one of them said.
The European Commission, China’s Ministry of Commerce, BYD and SAIC did not immediately respond to requests for comment. Geely declined to comment, but cited its October statement that the company complied with all laws and supported fair competition in the global market.
One source said investigators had arrived in China, while another said visits were planned for this month and February.
The purpose of these visits is to verify the car manufacturers’ responses to the questionnaires, i.e. to carry out on-site inspections. European Commission documents related to the investigation say it is in the “initiation stage”, with verification visits planned for April 11.
The sources asked not to be identified as details of the visit are confidential.
An investigation strongly criticized by Beijing
This investigation was described as protectionist by China and exacerbated tensions between Beijing and the EU.
Last week, China opened an anti-dumping investigation into cognac imported from the European Union, a move that appears to particularly target France, which supports the investigation into electric vehicles.
The share of Chinese-made vehicles in the European Union’s electric car market has risen to 8% and could reach 15% by 2025. Popular Chinese brands exported to Europe include SAIC’s MG and Geely’s Volvo.
In October, Chinese company Great Wall Motor said it was the first automaker to submit responses to the EU subsidy investigation.
The EU is seeking to reduce its dependence on China, the world’s second-largest economy, particularly when it comes to the materials and products needed for its ecological transition.
At the same time, Chinese electric vehicle makers, from market leader BYD to smaller Xpeng and Nio, are stepping up efforts to expand abroad as competition intensifies at home and Chinese economic growth slows. is running out of strength. Many of them have made sales in Europe a priority.
Source: BFM TV
