EU Investigators Will Inspect China’s BYD, Geely, SAIC In EV Probe

Investigators from the European Commission will inspect Chinese automakers in the coming weeks to determine whether to impose punitive tariffs to protect European electric vehicle (EV) manufacturers, according to Reuters. The investigation will focus on Chinese brands such as BYD, Geely, and SAIC.

The investigation, which began in October and could last up to 13 months, is looking into whether cheaper, Chinese-made EVs receive unfair benefits from state subsidies.

According to one source, the investigators have already arrived in China, and another said visits are scheduled for this month and February. During their visits, the investigators will conduct verification work such as on-site inspections and distribute questionnaires to automakers. 

Chinese-made vehicles now account for 8% of the European Union's EV market, with that figure expected to rise to 15% by 2025. These EVs typically sell for 20% less than EU-made models, making them quite popular among buyers. SAIC's MG and Geely's Volvo are the most popular Chinese models in Europe.

China has labelled the European Commission's move as protectionist, and tensions between the two have risen. In fact, last week, China launched an anti-dumping investigation into brandy imported from the EU, a move that appeared to be directed at France, which supports the EV probe.

Another factor contributing to strained relations between the two countries is Beijing's closer ties with Moscow following Russia's invasion of Ukraine.