Italian car brand in trouble, may have hid China origins of its models
- DR Automobiles has been accused of covering up possible China origins of some of its car models.
DR Automobiles has come under the investigative scanner in Italy after reports that it may have misrepresented details pertaining to origins of some of its car models. A relatively small car brand in the Italian automotive market, DR Automobiles may have misled its customers over the issue of where some of its offerings were originating from.
It is reported that DR Automobiles is staring at an antitrust investigation led by the Italian Competition Authority (AGCM) over the issue of whether some of its car models are actually manufactured in China. The company may have misrepresented this on its official website and in its advertisement campaigns.
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The investigation is likely to particularly focus on the DR and EVO-branded models sold by DR Automobiles. In Italy, the company sells models like the DR 1, DR 3 Coupe SUV, DR 4 SUV and DR 5 SUV. It also offers larger SUVs like DR6 and DR7. The company also assembles vehicles for Chinese brands like Chery, JAC, and BAIC.
The issue is that for its own vehicles, DR Automobiles would allegedly skip mentioning that some of these are made completely in China.
DR Automobiles may be a small player in the Italian automotive space but it has gained in strength through the course of 2023, selling over 24,000 units in the January to September time period. This is a 48 per cent jump from figures in the same time frame of 2022 and has helped it gain a two per cent market share.
Perceived image of China
China is the world's largest car market and is a major center for exports of units to foreign shores as well. A number of Chinese auto manufacturers have started with their respective expansion plans to markets abroad, especially Europe. And because manufacturing processes in the country are cheap, these models are often sold at a very lucrative price point in foreign markets, price points that global players are usually unable to match.
But beyond just the price, there is a perception of China-made cars in many parts of the world. In Europe specifically, China-made cars are still not taken to too warmly and with blinded trust. What then is powering sales is the affordability factor and the affordability factor alone.
