EU launches probe into EV maker BYD, Geely and SAIC over alleged unfair competition

European Union (EU) is launching a probe on Chinese electric vehicle (EV) makers to protect the market competence and homegrown car companies.

Reuters revealed that BYD, Geely, and SAIC are part of this investigation and won’t include any of the brands that are producing cars in China including Tesla, Renault, and BMW.

The car makers are under suspicion of receiving unfair subsidies from the Chinese government such as low-cost loans, land grants, and tax breaks.

This allegedly reduces their product cost and allows them to sell new cars at low prices compared to the higher prices of European automakers.

EU car firms fear that such alleged subsidies create unfair competition and take away their business with low-price offerings.

BYD Han

Launched in October, the probe could last 13 months and wants to ensure whether Chinese EV companies are playing fair without support from the state government.

The report mentioned that investigators have already reached China and more of the visits are planned later on.

These investigators will conduct on-site verification by questioning officials from Chinese automakers. The probe is currently in the initial stage and more visits will proceed the investigation further.

For now, the Chinese vehicle share accounts for 8% of the overall EV sales and this could expand by 15% in 2025 taking away car sales from the EU-made models.

More details about the entire investigation are due to official comments.