Through its competition watchdog, Italy has launched an investigation into four major automakers—Stellantis, Tesla, Volkswagen, and BYD—regarding potential unfair commercial practices related to electric vehicle performance claims.
The probe focuses on concerns regarding the accuracy and transparency of information provided to consumers about EV driving range, battery degradation, and warranty limitations.
According to the Italian Antitrust Authority (AGCM), the companies may have violated the country’s Consumer Code by failing to present clear and comprehensive details about how external factors impact an EV’s advertised driving range.
The agency’s statement criticized the automakers for publishing “generic and at times contradictory” information on their websites, which did not specify how variables such as climate conditions, driving behavior, and battery use affect real-world performance.
€10 million penalty
Furthermore, the investigation wants to determine whether these car companies withheld or obscured key information regarding battery degradation over time and their standard battery warranties’ precise terms and limitations.
In a significant escalation of the investigation, Italy’s financial crimes police unit, the Guardia di Finanza, conducted inspections at the Italian headquarters of the four automakers last Thursday. If the companies are deemed guilty, the regulatory authority can levy financial penalties of up to €10 million for deceiving consumers.
Automakers respond
Of the four companies under investigation, Stellantis was the first to issue a public response, asserting its full cooperation with authorities. The automaker stated that it had provided regulators with all requested documentation and was confident that its answers had been “adequate, precise, and exhaustive.” The company emphasized that customer satisfaction is a top priority and expressed confidence that the ongoing investigation would confirm its commitment to transparency.
Tesla, Volkswagen, and BYD have yet to issue public statements regarding the matter. However, industry observers suggest that the investigation could lead to broader scrutiny of EV marketing practices across Europe as regulators intensify oversight of consumer protection laws.
“Not very transparent”
Italian consumer groups have welcomed the move, arguing that EV buyers often receive unclear or misleading information about vehicle performance. Codacons, a leading consumer rights organization, accused automakers of failing to disclose essential details that could influence purchasing decisions, potentially leading to financial losses for customers who buy EVs based on unrealistic expectations.
“Information given to consumers on electric cars, charging, the autonomy of batteries, and driving range is too often not very transparent, if not misleading,” Codacons said in a statement. The group also signaled its willingness to pursue legal action for affected vehicle owners if the investigation confirms irregularities in how these EVs were marketed.
Struggling EV market
The investigation comes as Italy’s EV market struggles to gain momentum. In 2024, only 64,983 fully electric vehicles were sold in the country, a 2% decline from the previous year. EVs accounted for just 4.2% of total car sales, highlighting persistent consumer hesitation despite Europe’s broader push toward electrification.
Industry experts believe the investigation could have significant ramifications beyond Italy, potentially prompting similar regulatory reviews across Europe. If the probe finds automakers misrepresented key EV performance aspects, the companies involved may face more than financial penalties.
However, reputational damage is the last thing they need, as EV adoption is growing much slower than expected.
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