EU to inspect BYD, Geely and SAIC for its electric car investigation

SHANGHAI/BRUSSELS (Reuters) – European Commission investigators will inspect the sites of several Chinese electric vehicle makers in the coming weeks, as part of an investigation into whether they unfairly benefit from subsidies granted by the China, said three people involved in the process.

Launched in October and expected to last 13 months, the investigation will determine whether punitive tariffs should be imposed to protect European electric vehicle makers, with Chinese models typically selling 20% ​​cheaper.

Inspectors will visit BYD, Geely and SAIC, two sources said. Non-Chinese brands producing in China, such as Tesla, Renault and BMW, will not be targeted by the investigation, one of them said.

The European Commission, China’s Ministry of Commerce, BYD and SAIC did not immediately respond to requests for comment. Geely declined to comment, but cited its October statement that the company complied with all laws and supported fair competition in the global market.

One source said investigators had arrived in China, while another said visits were planned this month and in February.

The purpose of these visits is to verify the car manufacturers’ responses to the questionnaires, i.e. to carry out on-site inspections. European Commission documents relating to the investigation say it is at the “initiation stage”, with verification visits planned for April 11.

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

This investigation was described as protectionist by China, and exacerbated tensions between Beijing and the EU.

Last week, China opened an anti-dumping investigation into cognac imported from the European Union, a move that appears to particularly target France, which supports the investigation into electric vehicles.

The share of Chinese-made vehicles in the European Union electric car market has increased to 8% and could reach 15% in 2025. Popular Chinese brands exported to Europe include SAIC’s MG and Geely’s Volvo.

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

The EU is seeking to reduce its dependence on China, the world’s second largest economy, particularly for the materials and products needed for its ecological transition.

At the same time, Chinese electric vehicle makers, from market leader BYD to smaller Xpeng and Nio, are stepping up efforts to expand overseas as competition is intensifying inside the country and Chinese economic growth is running out of steam. Many of them have made sales in Europe a priority.

(Reporting by Zhang Yan in Shanghai, Philip Blenkinsop in Brussels and Maria Martinez in Berlin; with contributions from Laurie Chen in Beijing; Written by Brenda Goh; French version Gaëlle Sheehan, edited by Blandine Hénault)