The war in the auto sector will also be played out on a legal and regulatory level. In fact, the investigation is triggered by the European Commission which will send its investigators to inspect the Chinese car manufacturers operating in the Old Continent. The aim is to protect the automotive sector in Europe, especially as regards the production of electric cars. EU inspectors will visit BYD, Geely and SAIC, as reported by the first rumors, without however paying any attention to European and non-European brands that instead produce in China such as Renault, BMW and Tesla.
The EU investigation into BYD, SAIC and Geely
The investigation was formally launched in October 2023 and will last 13 months, with the aim of also verifying whether Chinese electric cars benefit unfairly from state subsidies provided in individual European Union countries. China's reaction was harsh, defining the action carried out by the EU as “protectionist”, intensifying tensions between Brussels and Beijing. Currently there have been no official statements on the matter from the parties involved, neither as regards the institutions nor as regards the car brands.
The EU responds to China
As reported by Automotive News Europe, the first results of the investigation should reach the European Commission by the first half of April. Over the last few months, the share of EVs on the European market has grown to 8% but according to forecasts it could reach 15% by 2025 thanks to the selling price which is 20% lower than the price lists of electric cars manufactured in Old World. The European Union is thus seeking to protect its automotive sector from the Chinese invasion, with BYD having already earned the crown as the best-selling electric car brand in the world.
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