DR Automobiles is under investigation in Italy following reports that it may have misrepresented details about the origin of some of its cars. DR Automobiles, a relatively small car brand in the Italian car market, may have misled customers on the issue of the origin of some of its products.
DR Automobiles is reportedly closely following an antitrust investigation led by the Italian Competition Authority (AGCM) into whether some of its vehicles are actually manufactured in China. The company may have misrepresented this on its official website and advertising campaigns.
The investigation is likely to focus specifically on DR and EVO branded models sold by DR Automobiles. In Italy, the company sells such models as his DR 1, DR 3 Coupe SUV, DR 4 SUV, DR 5 SUV. We also offer large SUVs such as the DR6 and DR7. The company also assembles vehicles for Chinese brands such as Chery, JAC and BAIC.
The problem is that DR Automobiles allegedly omits to mention that some of its vehicles are manufactured entirely in China.
DR Automobiles may be a small player in the Italian car industry, but it gained momentum throughout 2023, selling more than 24,000 units between January and September. This is a 48% increase compared to the same period in 2022 and contributed to a market share gain of 2%.
Image of China
China is the world’s largest automobile market and a major base for exporting automobiles overseas. Many Chinese automakers have begun their respective expansion plans into overseas, especially European markets. Additionally, because of the cheap domestic manufacturing process, these models are often sold at very favorable price points in overseas markets, prices that companies around the world cannot usually compete with.
However, in many parts of the world, there is a perception of Chinese-made cars that goes beyond price alone. Particularly in Europe, Chinese-made cars are still not received very warmly and with blind trust. What drives sales is the affordability factor, and the affordability factor alone.
First edition publication date: October 24, 2023, 9:38 AM IST