China’s ambitions to establish a significant presence in the European car market were prominently showcased at the Paris Auto Show this week, where a record number of Chinese automakers introduced advanced electric models. This comes despite a recent decision by the European Union to impose anti-subsidy tariffs on these vehicles.
At the event, which highlighted Europe’s leading automakers, the displays from companies such as BYD, Leapmotor, and Xpeng attracted considerable attention. These manufacturers emphasized their rapid technological advancements, including the integration of artificial intelligence, which they believe will enable them to compete with or even surpass their European counterparts in the electric vehicle sector.
Europe aims for a complete transition to electric vehicles by 2035, with major car manufacturers like Renault, Stellantis, BMW, and Volkswagen presenting new models designed to attract European consumers. However, Chinese automakers remain undeterred by what they perceive as protectionist measures intended to hinder their progress.
BYD, which made its European debut at the show two years ago, showcased seven models that its representatives claimed featured electric and hybrid technologies superior to those of European competitors. A large-screen video at BYD's display featured iconic global landmarks, symbolizing the company’s ambition to appeal to Western markets.
BYD has expanded its operations beyond China to 100 countries, with reports indicating that a quarter of all hybrid or fully electric vehicles sold globally in the first half of the year were produced by the company. Stella Li, executive vice president of BYD, criticized the recently imposed tariffs as unfair, a sentiment shared by other Chinese automakers.
The tariffs, effective from October 31 and lasting for five years, can reach as high as 45 percent. Nevertheless, both European and Chinese officials have indicated ongoing negotiations to address concerns regarding perceived unfair advantages held by Chinese automakers.
Li stated that BYD would continue its European expansion, introducing a new SUV in France and Germany, and announced price reductions on existing models to better appeal to European consumers. Meanwhile, Renault’s CEO, Luca de Meo, acknowledged the increasing competition from Asian manufacturers and introduced several new compact electric vehicles, including one made from 90 percent renewable materials, aimed at countering challenges from the East.
European automakers are facing significant challenges, with overall car sales this year approximately 18 percent lower than pre-pandemic levels, and electric vehicle sales declining even more, comprising only around 12 percent of the market share.
In a show of support for the French automotive sector, President Emmanuel Macron attended the event and interacted with Renault's new hybrid models. Despite this, some automakers recognize the persistent challenge from Chinese manufacturers. Stellantis, which owns brands like Peugeot and Citroen, has partnered with Leapmotor, a leading Chinese electric vehicle manufacturer, acquiring a 20 percent stake last year and establishing a joint venture to leverage Leapmotor's technology.
Carlos Tavares, CEO of Stellantis, expressed optimism about the collaboration, noting the strong interest from dealers and investors in affordable, technologically advanced electric vehicles. The partnership aims to reshape the landscape of electric mobility in Europe and beyond.
Leapmotor’s CEO, Jiangming Zhu, highlighted a jointly developed electric vehicle designed to meet European consumer preferences, with a starting price of just over $19,600, significantly lower than comparable European electric models.