Stellantis NV CEO Carlos Tavares stands next to the Citroën C5 Aircross concept car during the Paris Motor Show on Monday, October 14, 2024 in Paris, France.
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PARIS, France — Several of Europe’s largest automakers unveiled low-cost electric vehicles (EVs) at the Paris Motor Show paris auto show This week, looking to drive down demand and regain some market share The current market share is dominated by Chinese brands.
The biennial industry show, which opens in Paris on Monday and runs until Sunday, is thought to be a turning point for the European car industry.
“It feels like Europe is fighting back,” Julia Poliscanova, senior director of vehicles and electric vehicle supply chain at the Transport and Environment Campaign, told CNBC at the Paris auto show.
“There were so many new models on display and what’s really great is that there are a lot of more affordable launches. So Citroën, Peugeot (and) Renault all showed some smaller affordable models,” Poliskanova said explain.
“That’s what we need in the mass market, for people to buy more of these vehicles, and that’s where the competition from China is fiercest,” she added.
A partially covered wheel of a BYD Company electric vehicle is seen during the Paris Motor Show on Tuesday, October 15, 2024 in Paris, France.
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European car manufacturers have been working with perfect storm Challenges on the road to full electrification include a lack of affordable vehicle models, slower-than-expected rollout of charging infrastructure and Brewing trade war with China.
Pressure on European carmakers will intensify next year, when Emissions reduction targets After the bill came into effect, some called for emergency relief measures to avoid facing huge fines.
Against this background, automakers are keenly aware of the need to boost electric vehicle sales and have sought to use the Paris Motor Show as a platform to launch a series of low-cost models.
French car manufacturer RenaultFor example, the Twingo E-Tech electric prototype was shown to the public for the first time. it explain The all-electric car will start at less than 20,000 euros ($21,800) when it goes on sale in 2026.
Renault also launched its small electric SUV R4 and has received orders for its electric R5 model. Dacia brand under the group propose Its Spring model is known as one of the most affordable electric cars on the market, priced under 20,000 euros.
Auto giant starAt the same time, the new compact Citroen C4 and C4 X were launched, describe These models are “perfect examples” of how carmakers are responding to the challenges of the energy transition.
“Affordable mobility”
“Attitudes towards electric cars have cooled off and consumers have lost demand, but that’s not the case,” said Poliskanova of the Ministry of Transport and Environment.
“This year in Europe we don’t have affordable models, so people won’t buy those overpriced premium cars. But once vehicles get into the right price range next year… people will flock to buy them.”
The Wallbox EV charger for electric vehicles is on display during the “Mondial de l’Auto” exhibition in Paris, France on October 15, 2024.
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Poliscanova said the launch of multiple low-cost electric vehicles means electric vehicle sales could account for as much as 24% of the market next year, up from 14% this year.
Data shows electric cars made in China typically cost less than half what they cost in Europe and the U.S. last year publish The report from data firm JATO highlights the challenges Western carmakers face trying to keep up with Beijing.
JATO said that in the first half of 2023, the average retail price of pure electric vehicles in China was approximately 31,000 euros. In comparison, the average retail price of pure electric vehicles during the same period was more than 66,000 euros in Europe and more than 68,000 euros in the United States.
“People are looking for affordable ways to travel,” Dacia CEO Denis Le Vot told CNBC’s Charlotte Reed at the Paris auto show on Monday.
“At this moment, we have completely updated the Spring… The 2024 version features a new shape, a new engine, 64 horsepower, a new steering system, a new electronic architecture – and the price is less than 20,000 euros. Europe’s pure electric car Not many prices are lower than that,” he added.
“So even in the field of electric vehicles, Dacia plays a role in affordable mobility,” Le Vot said, noting that more than 150,000 Spring models have been sold in Europe.
“It’s never a linear growth story.”
Pere Brugaard, president and managing director of General Motors Europe, said the challenges facing the European auto industry should be seen as a transitional phase rather than evidence of a crisis.
“The adoption of new technologies and new behaviors has never been a linear growth story, but ultimately it’s all-electric (vehicles),” Brugaard told CNBC at the Paris auto show.
Some of the industry’s challenges come down to the need to change learned behaviors, rather than physical or technological barriers, Brugal said.
He added: “More investment in public charging infrastructure will help, but in fact Europe already has a large charging network that enables electric vehicle mobility.”
