The Italian Competition Authority (AGCM) has launched an antitrust probe against DR Automobiles, a small carmaker that sells low-cost vehicles imported from China, for allegedly misleading consumers about the origin of its cars.
DR Automobiles, based in the southern region of Molise, has been selling cars in Italy since 2006 under the DR and EVO brands. The company claims to be an Italian manufacturer that produces cars in its own factory with Italian components and design. However, the AGCM says that this is not true, as the company actually assembles cars from Chinese automakers such as Chery, JAC, and BAIC, using parts imported from China. The AGCM accuses DR Automobiles of omitting or hiding relevant information about the Chinese origin of its cars on its corporate website and in its advertising campaigns, thus deceiving consumers and violating fair competition rules.
DR Automobiles Enjoys A Growing Market Share In Italy
Despite the controversy, DR Automobiles has enjoyed a successful year in 2023, selling around 24,200 vehicles in Italy in the first nine months, up 48% from the same period last year. The company has a market share of 2%, making it one of the best-selling brands in the country. The company offers a range of models, from the small DR 1 hatchback to the large DR 7 SUV, as well as a pickup truck called the PK8. The company also sells fully electric vehicles under the EVO brand, such as the EVO 3 and EVO 5. The company’s main selling point is its low prices, which range from €8,000 to €25,000.
AGCM And Tax Police Conduct Inspections At DR Automobiles’ Headquarters
The AGCM and the tax police have conducted inspections at the headquarters of DR Automobiles and its parent company Donington Srl, as part of the antitrust investigation. The AGCM said that it will verify whether DR Automobiles has violated consumer protection and unfair commercial practices laws, and whether it has infringed the intellectual property rights of the Chinese automakers that supply its cars. The AGCM said that it will also assess the possible damage caused to consumers and competitors by DR Automobiles’ conduct. The investigation could result in fines or other sanctions for the company.
DR Automobiles Is Not The Only Company To Face Scrutiny Over Its Chinese Ties
DR Automobiles is not the only company to face scrutiny over its Chinese ties in Italy. In April this year, another carmaker called Ickx launched its first model, the K2 off-road SUV, which is based on the BAIC BJ40 but has some bespoke components such as a carbon fiber front grille. Ickx is a joint venture between DR Automobiles and a Chinese partner called Zhejiang Kandi Vehicles Co Ltd. The K2 was presented as a new Italian brand with a heritage inspired by the legendary racing driver Jacky Ickx, but some critics questioned its authenticity and originality.
