Europe’s biggest automakers have long used the Paris Motor Show to showcase new designs and technologies. This year, however, the theme is different: price.
With consumers balking at the high costs of owning electric vehicles (EVs), Stellantis, Renault e Volkswagen plans to showcase their latest affordable EVs at the biennial event starting on Monday (14). The objective is to reverse the drop in sales, which began last year, when governments began to reduce incentives for switching to combustion engines.
The success of these new models is crucial. Chinese rivals, led by BYDare gaining market share in the region with cheaper models. If European carmakers fail to sell more EVs, they could face fines of up to €15 billion for failing to meet stricter emissions reduction targets for their fleets.
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“The climate around EVs is not great at the moment — there is not enough charging infrastructure, there is volatility in prices, but we will see,” said Luca de Meo, CEO of Renault. “We are really doing our best.”
Renault is at the forefront of the search for affordable prices, presenting plug-in models in Paris, including the R4, which should cost less than €35,000 (R$215,000). The company will also showcase the new R5, a €25,000 electric version of a 1970s petrol car that offered economical transport at a time of rising oil prices.
REUTERS/Stephen Lam
The event could mark a turning point for European automakers, which have struggled to produce cheap EVs. Teething problems in software development, high labor costs and expensive components such as batteries have been a stumbling block for the industry.
To maintain profit margins, many automakers have focused on selling premium models. This, coupled with the removal of subsidies in countries such as Germany and Sweden, has pushed the average price of EVs above €45,000 this year. This has made electric models unaffordable for many Europeans, who are already dealing with rising living and borrowing costs.
Chinese competition
European automakers face fierce competition from Chinese manufacturers eager to expand in the region, despite Brussels’ decision this month to increase tariffs on their EVs by up to 45%.
BYD is bringing EVs and plug-in hybrids to Paris, including popular models that compete with French and German cars as well as Tesla’s Model Y. In a bid to demonstrate its technological prowess, BYD will also showcase the Yangwang U8, a luxury SUV costing around 1 million yuan ($141,509).
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A Xpengbased in Guangzhou and a partner of Volkswagen, will present its P7+ sedan, a longer wheelbase version of the P7, which costs €50,000 and competes with more expensive mid-size models from BMW and Mercedes.
Although manufacturers such as Great Wall Motor and Nio were not present at the event, several Chinese automakers sent their teams to Paris to discuss possible partnerships, entry into the European market and local production with manufacturers and dealers in the region.
Stellar
Stellantis is betting on the Chinese Leap motor to reduce the cost of its electric cars. Among the models presented in Paris is the Leapmotor B10, a compact SUV aimed at young drivers and expected to be cheaper than its competitors. Public reception could define Stellantis’ next steps in producing Leapmotor vehicles at a group factory in Poland.
A Citroënthe Stellantis brand that in 1948 helped popularize affordable cars in France with the 2CV, plans to introduce moderately priced EVs in Paris, including the New C3 Aircross, which it calls “the most affordable compact SUV” on the market.
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Citroën will also showcase the Citroën ë-C3, a €23,300 city car that began shipping months late in mid-September due to software problems.
These models are essential for Stellantis, which is going through a difficult phase. Pressure is mounting on CEO Carlos Tavares following a disastrous profit warning last month and consistently weak performance in the US, its biggest market. Tavares will attend several events in Paris after firing his chief financial officer on Thursday as part of a broad management shake-up.
Volswagen
Volkswagen, whose EV strategy has suffered from software problems and high costs in its home market of Germany, will not unveil new cars in Paris. Instead, it will showcase recent models including the Elroq, an electric SUV from the budget brand Skodawhich was revealed earlier this month with a price tag of around €33,000 — practically the same as its combustion equivalent. VW will also present a concept of the ID GTI, an all-electric version of the successful Golf GTI.
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The true test of Volkswagen’s ability to produce an electric “people’s car” could be the ID.2all. The launch of the €25,000 EV is only scheduled for the end of next year.
BMW
Even luxury carmaker BMW is bringing a more affordable option to Paris, featuring several Chinese-made Mini models alongside pricier, performance-oriented versions like the five-door Aceman.
The company will also showcase an electric concept for its new-generation entry-level SUV, the Vision Neue Klasse X. BMW promises 30% faster charging and up to 800 kilometers of range on a single charge.
Renault
Renault’s low-cost brand, Daciawill introduce the Bigster, a larger SUV aimed at combating the “rising costs” of the segment, according to the company.
In addition to the R4 and R5 — de Meo called the latter “the best small EV in the world” — Renault will also reveal a prototype for an electric Twingo that is expected to cost less than €20,000 when it hits the market in 2026.
“We are finally starting to see smaller vehicles and more affordable EVs,” said Serge Gachot, director of the Paris show. “There is still a cost difference compared to Chinese EVs, but this difference is closing.”
