Europe is open to competition, but not to a race to the bottom, the EU said. (Photo: Shutterstock)
2 min read Last Updated: July 4, 2024 | 05:53 PM IST
The European Union will launch an investigation into subsidies offered by China to electric car makers, the EU’s executive chief said on Wednesday, amid growing concerns that they are harming European companies.
Global markets are now flooded with cheap Chinese-made electric cars, prices kept artificially low by huge government subsidies, which is distorting our markets, European Commission President Ursula von der Leyen told EU lawmakers in Strasbourg, France.
“Just as we cannot accept distortions of our markets from within, we also cannot accept distortions from without,” said von der Leyen. So today I can announce that the European Commission will open an investigation into anti-subsidies for Chinese-made electric cars.
Chinese leaders have poured billions of dollars in subsidies into giving them an early advantage in a promising industry, helping make the country the largest market for electric vehicles.
Global automakers are facing increasing competition from Chinese brands that are eating away at market share at home.
Electric-car makers such as BYD Auto and the Zicl unit of Geely Group, which also owns Sweden’s Volvo Cars and its all-electric premium brand, Polestar, have started sales in Japan and Europe this year.
“Europe is open to competition, but not a race to the bottom. We must protect ourselves against unfair practices,” von der Leyen said, but gave no details of the investigation.
(Only the headline and photo of this report may have been modified by Business Standard staff. The rest of the content is auto-generated from a syndicated feed.)
First Published: July 4, 2024 | 5:53 PM IST
