At the Paris Motor Show this week, several major European car manufacturers introduced low-cost electric vehicles (EVs) in an effort to reignite demand and regain market share lost to Chinese brands. The biennial event, which commenced on Monday and is set to continue through Sunday, is anticipated to potentially mark a pivotal moment for the European automotive industry.
Julia Poliscanova, senior director for vehicles and e-mobility supply chains at Transport & Environment, commented on the significant number of new and affordable models being showcased by manufacturers like Citroen, Peugeot, and Renault. She indicated that these launches are crucial for the mass market and for competing with low-cost Chinese EVs.
European carmakers are currently facing a series of challenges as they transition to electric vehicles, including a shortage of affordable models, insufficient charging infrastructure, and a looming trade conflict with China. As stricter emissions-reduction targets are set to take effect next year, European automakers are using the Paris Motor Show to unveil more cost-effective models.
Renault has introduced the Twingo E-Tech electric prototype, with prices expected to start below 20,000 euros when it becomes available in 2026. The company also showcased its small electric SUV, the R4, and started accepting orders for the electric R5. Its Dacia brand presented the Spring model, deemed one of the most affordable EVs on the market at under 20,000 euros. Stellantis, another major automaker, launched the new Citroen C4 and C4 X, which they describe as prime examples of their strategy to meet the challenges of the energy transition.
Poliscanova emphasized that contrary to perceptions of waning consumer interest in EVs, the lack of affordable models has been the main barrier. She predicted that with more appropriately priced EVs arriving next year, market share could rise to 24% from 14% this year. Data from JATO revealed that Chinese EVs are significantly cheaper, posing a competition challenge for Western manufacturers.
Denis Le Vot, CEO of Dacia, highlighted the affordability of their Spring model, stating that the 2024 edition, featuring an updated design and engine, remains under 20,000 euros. He further noted that Dacia has sold over 150,000 units in Europe to date.
Pere Brugal, president and managing director of GM Europe, suggested that the current hurdles for Europe’s automotive sector are part of a transitional phase rather than a crisis. He noted that overcoming these challenges involves adapting behaviors rather than just solving technical issues, reiterating the importance of investment in public charging infrastructure.
