The Italian government has imposed a hefty $6.4 million (£5 million) fine on DR Automobiles for allegedly marketing Chinese-manufactured cars as Italian-made. The country’s competition regulator accused the firm of deceiving customers by branding vehicles primarily produced in China as products of Italy.
DR Automobiles, headquartered in Southern Italy, assembles budget-friendly vehicles using components sourced from Chinese car manufacturers Chery, BAIC, and JAC. Despite this, the company has been selling cars under its DR and EVO brands with misleading claims of Italian manufacturing. The regulator noted that only minor assembly and finishing tasks were performed in Italy.
The deceptive marketing practices have coincided with significant sales growth for DR and EVO vehicles in the Italian market. DR Automobiles plans to appeal the fine, asserting that it never claimed its vehicles were entirely made in Italy.
This fine is part of a broader crackdown by Italy and the European Union on cars produced outside the trading bloc. Last month, Italian authorities seized numerous Morocco-made Fiat Topolinos in the port of Livorno due to their Italian flag insignia. Stellantis, Fiat’s parent company, has since removed the flags, insisting it had complied with regulations.
Similarly, Alfa Romeo, another Stellantis brand, renamed its new Milano model to Junior following pressure, as the car is manufactured in Poland.
Also, the EU recently announced potential import taxes of up to 38% on Chinese electric vehicles, labeling them a threat to the regional automotive industry. These proposed tariffs would be in addition to the existing 10% rate on Chinese EV imports. China has criticized the move as “protectionism” and a violation of international trade rules.
The announcement follows the US decision to increase tariffs on Chinese electric cars from 25% to 100% last month, further escalating trade tensions.
By enforcing these measures, Italy and the EU aim to protect local automotive industries from the competitive pressure of lower-cost foreign-made vehicles.
