Elaris and EMotor settle legal dispute

The conflict over who would be allowed to import the ET5 electric SUV from China and sell it in Austria smouldered for over a year. An agreement has now been reached.

The German start-up Elaris and the Austrian company EMotor have reached an agreement and settled their legal dispute. The agreement stipulates that only Elaris is allowed to sell the electric SUV ET5 from the Chinese vehicle manufacturer Nanjing Golden Dragon Bus.

Over a year ago, EMotor filed a lawsuit against Elaris for unfair competition. Both companies imported the ET5 to Austria. However, EMotor claimed that they held the sole distribution rights for the electric SUV. The distribution of the ET5 by Elaris was therefore illegal. EMotor also accused the German start-up of collecting money in a profit participation certificate model and not informing its small investors sufficiently. Companies can use profit participation certificates to borrow money from investors without giving them a direct stake in the company. The securities are a hybrid of shares and bonds.

Elaris defended itself against this claim and sued for an injunction. In June 2021, the Chinese company revoked EMotor's distribution rights and granted Elaris exclusive distribution rights for Germany and Austria. The untrue statements had deterred potential business partners of Elaris and damaged the business.

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