Introduction | Lead

The 90th Paris Motor Show, which lasted for a week, came to a close on October 20. Despite the newly implemented tariff policy, Chinese automakers did not sit on the sidelines at this Paris Motor Show.

Produced by | Heyan Yueche Studio

Written by | Zhang Dachuan

Edited by | Heyan Studio

Total words: 2300

Reading time: 4 minutes

Although high punitive tariffs pose obstacles, they cannot deter Chinese automakers from their enthusiasm for the European market. At the recently concluded 90th Paris Motor Show, several Chinese automakers, including BYD, GAC Motor, Dongfeng, Hongqi, Leapmotor, and XPeng, still made a strong presence, with Chinese electric vehicles (EVs) undoubtedly taking center stage at the show.

As one of the world's top five auto shows, the Paris Motor Show boasts the longest history globally. Originating in 1898, the Paris Motor Show has been held every two years in autumn since 1976. Auto shows worldwide have faced some neglect in recent years due to financial constraints faced by automakers and profound changes in their marketing strategies. Traditional auto shows, seen as relatively outdated, struggle to meet the demands of young consumers. Nevertheless, this Paris Motor Show was still unprecedented in grandeur. For Chinese automakers still aspiring to make a mark in Europe and French brands fighting on home turf while hoping to showcase their new energy strategies, the Paris Motor Show remains an excellent platform.

△This Paris Motor Show attracted many European and American automakers

Tariffs cannot deter Chinese automakers' ambition to enter the European auto market

Chinese automakers remained active at the Paris Motor Show, demonstrating their determination to explore the EU market. Despite the recently imposed punitive tariffs by the EU, which may affect Chinese EVs to some extent, they cannot completely block Chinese EVs from entering the European market. The EU's decision to impose these tariffs, risking China's countermeasures, stems from two main considerations.

Firstly, the EU aims to buy time for European automakers to develop affordable EVs. Vehicle development takes a considerable period. If Chinese-made EVs gain significant market share during this interim, it will be challenging for European automakers to reclaim market dominance later. For major EU countries, the long-term direction remains clear: phasing out the sale of fuel-powered and hybrid vehicles. As charging infrastructure improves and EV technology matures and costs decrease, European automakers will seek to compete directly with Chinese counterparts once again.

△BYD launched new vehicles at the Paris Motor Show

Secondly, the EU hopes to encourage Chinese automakers to invest more in the EU, thereby boosting local economic development. Compared to China and the United States, the EU lacks economic vitality, so it urgently needs to attract foreign investment and foster new growth engines. Smart EVs represent a promising new technology direction.

△Leapmotor, with Stellantis as a shareholder, is determined to enter the European market

Therefore, while the EU tariffs may cost Chinese automakers some profits, the EU is unlikely to completely shut them out like the United States. Negotiations between the Ministry of Commerce of China and the EU are ongoing. For Chinese automakers, the EU, with its higher per capita income and stronger environmental awareness, remains an essential target market that cannot be easily abandoned.

French automakers show commitment to EV development

France voted against the EU tariffs. Their comprehensive push into EVs at the Paris Motor Show suggests that France aims to create a comfortable niche for itself by increasing the cost of Chinese EVs.

Renault, with its pure French heritage, presented seven global premieres and two concept cars across four brands. Renault unveiled the Emblème concept car and the 4 ETech EV, showcasing a refreshed image vastly different from its outdated domestic models. Dacia, which gained popularity in Europe through local manufacturing, launched the all-new C-segment SUV Dacia Bigster. However, the standout was Alpine's Alpenglow Hy6 prototype, equipped with a six-cylinder hydrogen internal combustion engine, signaling Alpine's commitment to hydrogen power technology.

△Renault's commitment to hydrogen power technology

Stellantis, formerly Peugeot-Citroën, showcased French brands Peugeot and Citroën along with Leapmotor, the Chinese brand in which it has invested. Peugeot-Citroën, fighting on home turf, exhibited 26 models, including five global premieres. The highlight was the all-new Peugeot e-408, poised to spearhead Stellantis' expansion in the European EV market.

△The all-new Peugeot e-408 will be Stellantis' strategic model for the European EV market

Divergent attitudes among American and Japanese automakers

At this Paris Motor Show, American and Japanese automakers exhibited vastly different attitudes.

Tesla returned to the Paris Motor Show after six years, showcasing its entire lineup, including the Cybertruck. With European automakers launching new-generation EVs, Tesla's previous dominance has waned. The Model 3 and Model Y, which account for most of Tesla's sales, have not been updated in years, making them less competitive. Without new products, Tesla faces a significant challenge in maintaining its market share in Europe. Tesla may offer more discounts and marketing campaigns in the European market.

△The success of the Cybertruck will be crucial for Tesla's growth in Europe

Apart from Tesla, Ford and Cadillac also showcased vehicles at the Paris Motor Show. Unlike General Motors, which sold its Opel brand, Ford has maintained a stable presence in Europe. Ford sells two EVs based on Volkswagen's MEB platform and the all-electric Transit, which remains popular in the short term. Cadillac's presence sparked hopes that General Motors might return to the European market. Facing challenges in the Chinese market, General Motors cannot rely solely on the US. Using Cadillac's LYRIQ and Celestiq EVs to test the European market could be a compromise solution for General Motors' future return.

△GM, Ford, and Tesla were all present at this year's Paris Motor Show

Japanese brands like Toyota, Honda, and Nissan were absent from the Paris Motor Show. Their lack of competitive EV models might be the primary reason for their absence.

Commentary

Despite the EU's economic stagnation, it has not adopted policies similar to the US to completely block Chinese EVs, making the EU market an essential overseas market for Chinese automakers. Japanese automakers faced 100% tariffs in the US but still established a foothold through local production. Tariffs only increase the difficulty for Chinese automakers in entering Europe. However, as long as Chinese EVs maintain their product advantages, the overall trend will not reverse. Chinese automakers must develop a long-term strategy for Europe, as they will face challenges not only from European automakers but also from American and Korean competitors.

(This article is originally created by Heyan Yueche and may not be reproduced without authorization)