Italian Authorities Investigate Major Electric Car Manufacturers Over Misleading Range Claims

The Italian Competition Authority, Autorità Garante della Concorrenza e del Mercato (AGCM), has initiated investigations against four prominent electric vehicle manufacturers due to potential deceptive business practices. This announcement was made on February 21, 2025, in Rome.

The investigations target the Italian branches of Volkswagen, Tesla, BYD, and Stellantis, focusing on the accuracy of the manufacturers' claims regarding the driving range of their electric vehicles, battery capacity degradation, and the restrictions associated with standard battery warranties. The AGCM asserts that these practices may constitute a violation of consumer protection laws.

Specifically, the AGCM accuses these companies of providing unclear and sometimes contradictory information about the range of their electric vehicles on their websites. The authority contends that the manufacturers fail to adequately disclose the factors that influence the advertised maximum range and the extent of their impact on actual performance.

Moreover, it is alleged that consumers have not been sufficiently informed about the normal degradation of battery capacity resulting from regular use. The agency emphasizes that the lifespan of electric vehicle batteries can be affected by various elements, including low temperatures and inconsistent charging practices.

As part of the investigation, officials from the AGCM, supported by the financial police, Guardia di Finanza, conducted searches at the headquarters of Volkswagen, Tesla, BYD, and Stellantis in Italy on February 20, 2025. BYD has chosen not to comment on the matter, while Volkswagen and Stellantis did not provide an immediate response to inquiries. Tesla's Italian branch was also unavailable for comment.

Concerns regarding inflated performance claims within the automotive industry have been raised previously, with reports suggesting that manufacturers may systematically exaggerate their specifications while obscuring actual battery capacities. This includes potential undisclosed reserves that fall below the zero percent threshold of battery capacity.

Analyses have indicated that this lack of transparency in Germany alone may have resulted in financial losses exceeding 350 million euros for electric vehicle customers, with global losses potentially reaching several billion euros.

Additionally, brands like Porsche are under scrutiny due to significant discrepancies reported in the range of their electric model, the Taycan. Consumer advocacy groups have likened this situation to the notorious diesel emissions scandal, dubbing it an 'Electrogate'.

According to legal standards, a substantial defect is identified when the actual range of a vehicle deviates by more than ten percent from the manufacturer's claims. Reports indicate that consumers have experienced discrepancies as high as 35 percent with the Porsche Taycan, raising the possibility of claims for compensation or contract cancellation.

This ongoing investigation highlights the increasing scrutiny faced by electric vehicle manufacturers regarding their marketing practices and the imperative for transparency in the rapidly evolving automotive market.