The investigations come at a time when the electric vehicle market is rapidly expanding, with consumers increasingly turning to EVs as part of the global push towards sustainable transportation
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Italy’s competition authority said Friday (February 21) that it has launched an investigation into electric vehicle manufacturers BYD, Stellantis, Tesla, and Volkswagen.
The Italian Competition Authority’s (AGCM) probe into the companies has been launched for allegedly misleading consumers regarding the performance of their EVs.
The inquiry focuses on potential unfair commercial practices related to the accuracy of information provided on EV driving ranges, battery capacity degradation, and limitations on standard battery warranties, the authority said in a statement.
Under Italian consumer protection laws, violations can result in fines ranging from 5,000 euros ($5,230) to 10 million euros.
What is the probe about?
The Italian competition authority said the automakers’ websites feature “generic and sometimes contradictory information” regarding EV driving ranges.
The statements often fail to clarify the impact of factors such as cold weather, air conditioning use, and road type on the actual driving range.
Additionally, the regulator alleged that the companies did not clearly inform consumers about how everyday use affects battery capacity or provide complete details on battery warranty terms and limitations.
On Thursday (February 20), the authority conducted inspections at the Italian headquarters of the four automakers, with support from the Guardia di Finanza, Italy’s financial crimes police.
The investigations come at a time when the electric vehicle market is rapidly expanding, with consumers increasingly turning to EVs as part of the global push towards sustainable transportation.
How did EV companies react?
Stellantis said it is fully cooperating with the investigation and has provided the requested information and documentation.
“Stellantis places the needs and satisfaction of its customers at the centre of all its activities and believes that the ongoing investigation will confirm this,” the company said.
BYD and Volkswagen, however, have not commented on the issue. Elon Musk-led Tesla did not immediately respond to a request for comment, Reuters reported.
With inputs from agencies