The Italian government has fined a car company $6.4m (£5m) for allegedly branding vehicles that were made in China as being produced in Italy.

DR Automobiles misleadingly marketed cars as being produced in Italy, even though they were mostly made in China, according to the country’s competition regulator.

The firm said it would appeal against the fine as it had never claimed its vehicles were completely made in Italy.

Southern Italy-based DR Automobiles assembles low-cost vehicles, using components produced by Chinese car makers Chery, BAIC and JAC.

The regulator said cars under the company’s DR and EVO brands were sold as being Italian-made but were largely of Chinese origin.

Only minor assembly and finishing work was carried out in Italy, it said.