EUROPE’S CARMAKERS GET TEMPORARY RELIEF FROM CHINA AHEAD OF PARIS MOTOR SHOW

EUROPEAN AUTOMAKERS, INCLUDING VOLKSWAGEN, STELLANTIS AND RENAULT, HAVE RECEIVED A BOOST AFTER CHINA AND THE EUROPEAN UNION REACHED AN AGREEMENT IN PRINCIPLE TO REDUCE CHINESE HYBRID VEHICLE EXPORTS TO THE BLOC BY MORE THAN HALF. THE MOVE FOLLOWS GROWING TRADE TENSIONS AND COMES AS EUROPEAN MANUFACTURERS STRUGGLE WITH DECLINING SALES, RISING COSTS AND INCREASING COMPETITION FROM CHINESE BRANDS.

THE PARIS MOTOR SHOW, RUNNING FROM OCTOBER 12 TO 18, WILL SHOWCASE HOW EUROPEAN CARMAKERS ARE RESPONDING WITH NEW ELECTRIC VEHICLES, AFFORDABLE MODELS AND STRATEGIC PARTNERSHIPS. HOWEVER, CHINESE MANUFACTURERS SUCH AS BYD, XPENG AND LEAPMOTOR CONTINUE TO EXPAND THEIR PRESENCE, COMPETING ON PRICE, TECHNOLOGY AND FEATURES. WITH CHINESE BRANDS ACCOUNTING FOR NEARLY 12% OF EUROPE’S NEW-CAR MARKET IN AUGUST, THE INDUSTRY FACES MOUNTING PRESSURE TO STRENGTHEN ITS COMPETITIVENESS WHILE NAVIGATING TRADE RESTRICTIONS AND SUPPLY-CHAIN DEPENDENCE ON CHINA. ...