The European Commission has reached out to three leading mainland Chinese electric carmakers — BYD, SAIC and Geely — alleging that the companies have not provided enough information as part of the ongoing subsidy probe to the commission, according to a news report published by Politico on May 2.
The European Commission has issued letters, dated April 23, to the three electric-vehicle makers from mainland China, informing them that they have not provided enough information on the government subsidies they have received, and information about their operations and supply chains.
Citing the commission, the news report mentioned that in the absence of critical information, it will rely on publicly available facts, and this could also mean that it has a free hand to impose higher duties on the imported products by these companies.
According to the news report, the correspondence suggested that the trade investigation, launched by European Commission President Ursula von der Leyen in 2023, could be heading toward a harsh outcome. This comes at a time when mainland China-based electric car companies are increasingly launching their vehicles and consolidating their footprints in Europe.
Citing the Trade Commissioner Valdis Dombrovskis, who spoke to the publication on the matter, the report said that the commission’s ongoing EV probe continues to advance and is expected to wrap up before the summer break.
The commission had launched a probe against the mainland Chinese EV makers on allegedly receiving heavy subsidies to produce cost-competitive vehicles, which significantly undercut the EVs produced by European carmakers, drawing more sales.
According to the note, the European Commission may impose extra duties on the import of EVs from mainland China to create a level playing field for its homegrown automakers in Europe.
