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Friday, January 12, 2024

EU investigators to inspect China's BYD, Geely and SAIC in EV probe - source

 European Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers, three people involved in the process said.

The inspectors will visit BYD, Geely and SAIC, two sources said, with one of them saying the investigators will not visit non-Chinese brands produced in China, such as Tesla, Renault and BMW.

The probe, launched in October and scheduled to last 13 months, seeks to determine whether cheaper, Chinese-made EVs benefit unfairly from state subsidies. Called protectionist by China, the investigation has escalated tensions between Beijing and the EU.

The European Commission, China's commerce ministry, BYD and SAIC did not immediately respond to requests for comment. Geely declined to comment but cited its October statement that the company followed all laws and supported fair market competition globally.

One source said the investigators have arrived in China, while another said visits are scheduled for this month and February.

The visits are for verification work - on-site inspections checking responses the automakers gave to questionnaires - one source said. European Commission documents for the probe say it is in the "initiation stage", with verification visits due by April 11.

The sources asked not to be named as details of the visit were confidential.

Last week, China opened an anti-dumping investigation on brandy imported from the European Union, a step that appeared targeted at France, which backs the EV probe. Popular Chinese models exported to Europe include SAIC's MG and Geely's Volvo.

Chinese-made vehicles' share of the European Union's EV market has risen to 8% and could reach 15% in 2025, with these EVs typically selling for 20% less than EU-made models.

In October, China's Great Wall Motor said it was the first automaker to submit responses to the EU subsidy investigation.


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