Transparency in the EV market: The impact of the Italian investigation

Italy’s Competition Authority Launches Probe Into EV Consumer Claims

Italy’s antitrust watchdog has opened an investigation into four major automakers—Stellantis, Tesla, Volkswagen, and BYD—over concerns that their websites may be providing misleading information regarding electric vehicle (EV) performance, battery degradation, and warranty limitations. The probe, announced by Italy’s competition authority, centers on the clarity and accuracy of claims made about EV driving ranges and battery life, a matter that has significant implications for consumer trust and market transparency.

Pic source: AGI M365

According to the authority, many automakers’ online communications present “generic and sometimes contradictory” information about EV range, failing to adequately explain how factors like cold weather, rapid charging, and real-world driving conditions can impact performance. Moreover, the investigation is examining whether the disclosures on battery capacity degradation and warranty exclusions meet the standards set by Italian consumer protection laws. Under these regulations, fines for violations can range from €5,000 to €10 million.

Stellantis, one of the companies under investigation, stated that it is fully cooperating with the authorities, emphasizing that it has provided “adequate, precise and exhaustive” responses to all queries. While BYD and Volkswagen have refrained from commenting, Tesla has yet to respond to requests for further clarification. The probe is part of a broader European effort to enhance transparency in the rapidly growing EV market—a sector where reliable performance data is increasingly critical as consumers weigh long-term costs and benefits.

Industry experts warn that clear, accurate consumer information is essential not only for building trust but also for encouraging sustainable market practices. With EVs becoming a significant component of the automotive landscape, discrepancies in warranty information and performance metrics can have far-reaching consequences for both manufacturers and buyers. “Consumers need to understand what they’re really getting”. “Clear, standardized data on EV performance and battery longevity is vital for informed purchasing decisions.”

This move by Italy’s competition authority could prompt broader regulatory changes across Europe. In parallel developments, new requirements such as the EU Batteries Act—which mandates digital battery passports for tracking the lifecycle of EV batteries—are aiming to bolster transparency throughout the supply chain. Such measures are expected to drive innovation and encourage automakers to adopt more rigorous disclosure practices, ultimately benefiting the consumer.

As the investigation unfolds, stakeholders in the EV sector are watching closely. The outcome could lead to stricter guidelines on how EV performance data is communicated, reshaping both marketing strategies and warranty structures across the industry. For now, consumers are advised to carefully review the detailed fine print on automaker websites and seek independent verification of performance claims before making purchase decisions.

Source: Reuters reuters.com