(Yicai) July 12 -- The United States has announced anti-dumping and countervailing duty investigations into imports of Chinese-made low-speed personal transport vehicles such as golf carts.

The US Department of Commerce’s move yesterday came in response to a petition submitted last month by the American Personal Transportation Vehicle Manufacturers Coalition, which comprises producers Club Car and Textron Specialized Vehicles.

The petition claimed that state-backed Chinese companies are selling the vehicles in the United States at much less than fair value, with dumping rates estimated at 477 percent. It also said the Chinese firms benefit from numerous countervailable government subsidies, such as tax breaks and discounted raw materials, providing an unfair and artificial advantage. 

Chinese imports more than doubled from 2021 to reach more than USD522 million last year, the petition said, adding that “Chinese producers have gained a significant and increasing share of the US market at the direct expense of the American industry.” 

The commerce department will now investigate whether the imports are causing material injury to the domestic industry and is expected to issue a preliminary countervailing duty determination on Sept. 13.

Low-speed vehicles are generally priced from USD8,000 to USD12,000. They have a range of 30 to 40 miles per charge, and are widely used at golf courses, resorts, and commercial facilities in the United States. The market is expected to be worth USD2.5 billion by 2032, according to Astute Analytica.

China's exports of utility vehicles are primarily concentrated in North America, the Asia-Pacific, the Middle East, and Europe, accounting for more than 95 percent of the total exported. China shipped out 135,800 golf carts and other utility vehicles to the US last year.

Lvtong New Energy Electric Vehicle Technology, whose main overseas income comes from the US, said on June 21, the day after the petition was submitted, that in the event of a trade investigation, the Guangdong province-based firm would take proactive measures to cooperate.

Lvtong's products include golf carts, sightseeing vehicles, and electric patrol cars. Its revenue from overseas markets was CNY947 million (USD130 million) last year, making up almost 88 percent of its total, with a gross profit margin of 34.5 percent.

Editor: Tom Litting