At this year's Paris International Motor Show, dozens of new models from Europe were unveiled. For example, Stellantis Group launched six new models and displayed nine concept cars at the auto show. The Franco-Italian auto group owns European brands such as Citroën, Peugeot, Opel and Fiat.
According to Reuters, European and Chinese car companies are expected to release a total of up to 60 new models at the Paris Auto Show. The battle for European consumers is heating up.
Shortly before this year's Paris Auto Show, officials from the European Commission just revealed that the EU plans to set an import cap for hybrid cars from China in the future to further curb the influx of Chinese cars into the European market. Starting in 2024, the EU has imposed additional tariffs on pure electric vehicles from China.
European automakers welcomed the new plan. According to Reuters, Renault CEO Francois Provost said that large-scale imports of hybrid cars from China are "unsustainable" for Europe. He believes that reaching an agreement at the moment is "better than a trade war."
Volkswagen CEO Oliver Blume also welcomed the agreement on Sunday. He said any business that wants to sell cars in Europe must do so under conditions comparable to local manufacturers and create jobs and added value.
Currently, the EU is developing "Made in Europe" standards. French President Macron said that France and Germany are close to reaching an agreement on this. "It is vital for us to protect Europe's productive capacity," he said.
Will Chinese hybrid car sales in Europe be halved in the future?
Reuters reported that the EU plans to impose a cap on imports of Chinese hybrid vehicles, which may halve the sales of Chinese hybrid vehicles in Europe. According to experts from US investment bank Jefferies, the agreement may have the biggest impact on SAIC, the parent company of BYD and MG. In the first eight months of this year, the two companies accounted for about 90% of hybrid cars imported into the EU.
However, some auto industry professionals believe that the EU's planned import cap measures are unlikely to stagnate the sales of Chinese automakers in Europe. Felipe Mundoz, an expert at the automotive industry analysis and consulting company, said, "Europe must now decide whether to follow the example of the United States or allow the entire industry to be acquired by China."
Today, the road for Chinese cars to enter the United States is full of thorns. Out of concerns about data security and the protection of local jobs, the U.S. government has essentially excluded Chinese-made cars from the U.S. market by imposing significant tariffs and other measures.
“Without exports to Europe, Chinese car dealers will go bankrupt.”
Chinese manufacturers play a particularly important role at the Paris Motor Show on Monday (October 12). According to Chinese official media reports, a total of 16 Chinese car companies and 25 brands participated in this auto show, and many new models made their European debuts, "concentrating on displaying innovative achievements in the fields of power batteries, ultra-fast charging, intelligent driving and artificial intelligence."
A Reuters report pointed out that the number of Chinese automakers participating in the exhibition was twice that of two years ago. These companies are responding to the problem of overcapacity in China’s domestic market through exports. With the U.S. market largely closed to Chinese automakers, they are even more reliant on Europe, a lucrative export market.
According to data from automotive analyst Matthias Schmidt, Chinese manufacturers' market share in Europe rose to 15% in the second quarter; the market share of plug-in hybrid vehicles even exceeded a quarter.
"If they (Chinese automakers) give up exports to Europe, they will go out of business because they can't make money anywhere else," said Francois Roudier, secretary-general of the World Organization of Automobile Manufacturers (OICA).
