Elaris and EMotor settle legal dispute

For over a year, the conflict over who would be allowed to import the ET5 electric SUV from China and sell it in Austria simmered. Now there has been an agreement.

The German start-up Elaris and the Austrian company EMotor have reached an agreement and settled their legal dispute. Under the settlement, only Elaris will be allowed to sell the ET5 electric SUV made by Chinese vehicle manufacturer Nanjing Golden Dragon Bus.

More than a year ago, EMotor sued Elaris for unfair competition. Both companies imported the ET5 to Austria. However, EMotor claimed that they had the sole distribution right for the electric SUV. Thus, the distribution of the ET5 by Elaris would be illegal. EMotor also accused the German start-up of collecting money in a profit participation certificate model and not sufficiently informing its small investors about it. Profit participation certificates allow companies to borrow money from investors without giving them a direct stake in the company. The securities are a hybrid of stocks and bonds.

Elaris resisted this claim and sued for injunctive relief. In June 2021, the Chinese company revoked EMotor's distribution rights and granted Elaris exclusive distribution rights for Germany and Austria. The untrue statements would have scared off potential business partners of Elaris and damaged its business.

Elaris is a start-up from Grünstadt, Germany, founded in 2020. The company imports e-cars from China to offer them on the German, Austrian and Swiss markets. In the process, Elaris also enters into partnerships with Chinese manufacturers. For the coming year, Elaris aims to offer its own vehicle, designed in Germany and manufactured in China.