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Thursday, Feb 27, 2025

Major Electric Vehicle Manufacturers Under Investigation for Misleading Range Data

Italian authorities probe major car manufacturers, including Tesla, BYD, Volkswagen, and Stellantis, over concerns of misleading information on electric vehicle range and battery warranty claims.
The Italian Competition and Market Authority (AGCM) has launched an investigation into four major global electric vehicle (EV) manufacturers over suspicions of misleading consumers regarding range data and battery warranties.

The manufacturers under scrutiny include Tesla, BYD, Volkswagen, and Stellantis, which represent a significant portion of the global electric vehicle market.

This investigation specifically focuses on their operations in Italy, where recent raids were conducted at the local offices of the manufacturers involved.

The investigation is centered around allegations of the companies providing inaccurate or misleading information to consumers about the driving range of their electric vehicles, as well as potential issues related to battery capacity degradation over time and limitations on battery warranties.

The AGCM has raised concerns about the presentation of range data on the manufacturers' websites, particularly the use of general figures without adequate clarification of the variables that affect real-world performance.

The authority also highlighted a lack of clear and complete information regarding the reduction in battery capacity during regular use, as well as the conditions under which battery warranties apply.

These types of allegations are not new in the automotive industry.

In the past, manufacturers of vehicles with internal combustion engines faced similar investigations and significant fines for misleading consumers, particularly concerning fuel consumption and emissions data.

The current investigation, however, is focused on the emerging electric vehicle sector, which accounted for approximately 15% of all new cars on the road in Europe last year.

The AGCM’s statement emphasized that the inquiry is investigating the presentation of electric vehicle range data, the generalization of battery capacity loss, and the enforceability of warranty terms related to batteries, which may not align with legal standards.

The authority pointed out that manufacturers have failed to provide consumers with comprehensive and transparent information on these key issues, which could lead to consumer confusion and potential financial harm.

In the broader context of the automotive industry, the investigation into electric vehicle manufacturers is part of a continuing trend in which companies are scrutinized for the accuracy of their performance claims.

This has been especially relevant in the case of hybrid vehicles, where manufacturers have been criticized for citing unrealistic range figures based on laboratory conditions that do not reflect real-world driving conditions.

The investigation reflects ongoing efforts by regulatory bodies to ensure that consumers are presented with clear and accurate information, even when this leads to potential conflicts with major manufacturers that hold significant financial influence.
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