Summary
- European carmakers unveiled low-cost electric vehicles at the Paris Motor Show to regain market share
- Pressure on European automakers is increasing due to the upcoming emissions-reduction targets
- Car manufacturers launched affordable EV models at the show to boost sales
- Chinese-made EVs are significantly cheaper than those in Europe and the US
- GM Europe’s president believes the challenges in the auto industry are transitional and not a crisis.
Article
Europe’s top carmakers showcased low-cost electric vehicles at the Paris Motor Show in an effort to compete with Chinese brands and revitalize a sluggish market. The show, which took place from Monday to Sunday, featured a range of new affordable models from manufacturers such as Citroen, Peugeot, and Renault. According to Julia Poliscanova of the Transport & Environment campaign group, Europe’s auto industry is fighting back with a wave of accessible EV options that could help boost sales in the mass market and compete with Chinese offerings.
European automakers have faced challenges on the path to full electrification, including a lack of affordable models, slow rollout of charging infrastructure, and a potential trade war with China. The pressure is expected to increase next year when emissions-reduction targets go into effect, leading to calls for urgent relief measures to avoid penalties. In response, car manufacturers have used the Paris Motor Show to introduce a variety of low-cost electric options, designed to attract consumers and increase sales in the electric vehicle market.
Renault unveiled the Twingo E-Tech electric prototype and priced it at less than 20,000 euros, aiming to make it accessible to a wide range of consumers. The company also presented its small electric SUV, the R4, and the electric R5, which has already received orders. Stellantis launched the Citroen C4 and C4 X models, promoting them as examples of the company’s commitment to the energy transition. Dacia, a subsidiary of Renault, presented its Spring model as one of the most affordable EVs on the market, priced at less than 20,000 euros.
Transport & Environment’s Julia Poliscanova emphasized the importance of offering affordable EVs to stimulate consumer demand and increase market share in Europe. With the introduction of several low-cost electric models, she predicted that electric car sales could reach a record 24% market share next year, up from 14% in the current year. The affordability of Chinese-made EVs, which are significantly cheaper than those in Europe and the U.S., presents a significant challenge for Western automakers in terms of price competitiveness.
Dacia CEO Denis Le Vot highlighted the brand’s role in providing affordable mobility through vehicles like the Spring, which offers new features and technology for less than 20,000 euros. The company has sold over 150,000 Spring models in Europe, underscoring the demand for affordable electric options in the market. GM Europe president Pere Brugal emphasized that the transition to electric vehicles is a non-linear growth story, with challenges related to changing consumer behaviors rather than technical limitations. He noted the importance of investing in public charging infrastructure to support the growth of electric vehicle mobility in Europe.
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