EUROPEAN Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers, people involved in the process said.

The inspectors will visit BYD, Geely and SAIC, the sources said, with one of them saying the investigators will not visit non-Chinese brands produced in China, such as Tesla, Renault and BMW.

The probe, launched in October and scheduled to last 13 months, seeks to determine whether Chinese-made EVs benefit “unfairly” from State subsidies. Called protectionist by China, the investigation has escalated tensions between China and the EU.

The European Commission confirmed it would carry out the visits.

“The commission selected a representative sample of Chinese and EU producers, which have already replied to the questionnaires,” said Olof Gill, European Commission spokesperson for trade.

“The commission will carry out verification visits at their premises in January and February 2024,” he said.

China’s commerce ministry, BYD and SAIC did not immediately respond to requests for comment. Geely declined to comment but cited its October statement that the company followed all laws and supported fair market competition globally.

One source said the investigators have arrived in China, while another said visits are scheduled for this month and February.

The visits are for verification work — on-site inspections checking responses the automakers gave to questionnaires — one source said. European Commission documents for the probe say it is in the “initiation stage,” with verification visits due by April 11.

Popular Chinese models exported to Europe include SAIC’s MG and Geely’s Volvo.

Chinese-made vehicles’ share of the European Union’s EV market has risen to 8% and could reach 15% in 2025, with these EVs typically selling for 20% less than EU-made models.

BYD recently overtook Tesla as the global leader in sales of electric vehicles. BYD keeps its costs low partly by owning the entire supply chain of its EV batteries, significant since a battery accounts for 40% of an EV’s price. (SD-Agencies)