European Union Investigators to Conduct Inspections on China’s BYD, Geely, and SAIC as Part of Electric Vehicle Investigation – Insider Sources

Shanghai/Brussels – As part of an ongoing probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers, European Commission investigators are planning to inspect Chinese automakers in the coming weeks. The aim is to determine if Chinese-made EVs benefit unfairly from state subsidies, which has led to heightened tensions between Beijing and the EU, and has been described as protectionist by China.

Inspections are expected to take place at BYD, Geely, and SAIC, with no plans to visit non-Chinese brands produced in China, such as Tesla, Renault, and BMW. These verification visits will involve on-site inspections to check the responses provided by the automakers to questionnaires.

Chinese-made vehicles currently hold an 8% share of the European Union’s EV market, a figure that could potentially rise to 15% by 2025. These vehicles are generally sold at prices 20% lower than EU-made models. This rise in market share has prompted the European Commission to take a closer look at whether Chinese EV manufacturers are benefitting unfairly from the market.

The investigation also comes at a time when Chinese companies, including market leader BYD, Xpeng, and Nio, are looking to expand their overseas presence in the face of intensifying competition domestically and a slowdown in domestic growth.

The probe is estimated to last for 13 months, and visits to the Chinese automakers are scheduled to take place this month and in February. Meanwhile, China has opened an anti-dumping investigation into brandy imported from the European Union, hinting at potential trade retaliations.

The European Commission and China’s commerce ministry, as well as the concerned automakers, have not yet responded to media requests for comments. However, Geely reiterated that it follows all laws and supports fair market competition globally.

As international relations continue to evolve, particularly between China, the EU, and other global powers, the automotive industry finds itself at the center of complex trade dynamics and shifting market trends.