Italian Car Brands Fined €6 Million for Misrepresenting Chinese Cars
Italian car brands DR and Evo have been fined €6 million for falsely marketing Chinese cars as being made in Italy. The competition and markets authority in Italy, AGCM, revealed that the parent company of the brands, DR Automobiles, had inaccurately promoted Italy as the origin of its vehicles.
AGCM stated that the cars are actually manufactured in China and are only completed at DR’s Macchia d’Isernia plant, leading to customers being deceived. Additionally, AGCM noted that DR’s servicing arm had failed to ensure a sufficient supply of spare parts from 2022 onwards.
DR has been given a 60-day period to address the issue. Company founder Massimo Di Risio expressed disagreement with the decision and plans to challenge it. The antitrust investigation began in October 2023.
This development is part of a broader crackdown by the Italian government on foreign-made cars. Alfa Romeo recently renamed its latest model from Milano to Junior after concerns were raised about the Polish-built crossover violating a law restricting geographical names to products made in Italy.
DR: A Rising Star in the European Automotive Market
DR, a lesser-known Italian company, is poised to become a significant player in Europe’s mainstream automotive sector. The brand surpassed MG, Alfa Romeo, Mini, Cupra, Tesla, and Volvo in sales within Italy last year.
In 2023, DR entered Italy’s top 20 brands by selling 32,650 new cars, achieving a market share of 2.1% with a 34% year-on-year growth. This success led to expansion into Bulgaria, France, and Spain after a remarkable 193% growth in 2022.
Founded in 2006, DR initially rebranded Chery cars for the local market and later established partnerships with JAC and BAIC. This allowed DR to introduce three sibling brands over the past three years: Evo, Sportequipe, and Ickx.
The company offers a range of models from hatchbacks to SUVs with various powertrain options. DR also owns the rights to Osca, a sports car brand created by the Maserati brothers in 1947.
Despite recent challenges regarding the origin of its vehicles, DR has expanded its production facilities, including assembly lines for over 50,000 cars annually and the capability to produce electric vehicles.
As DR navigates through the aftermath of the AGCM probe and potential competition from Chery’s European sales, its future in the automotive industry remains intriguing.