Crunch Time: Chinese and European Automakers Clash at Paris Car Show

The Paris car show sees Chinese and European automakers in a tense standoff as EU prepares tariffs on Chinese EVs while both industries grapple with demand issues. Chinese brands aim for a market share in Europe, facing stiff competition from European manufacturers defending their territory amid economic strains.

The atmosphere at this year's Paris car show was charged as Chinese and European automakers faced off under the looming threat of EU-imposed tariffs on Chinese electric vehicles. This pivotal event arrives at a time when the automotive industry is grappling with weakened demand and economic pressures.

Stellantis CEO Carlos Tavares and BYD executive vice president Stella Li highlighted the consequences of these tariffs, warning of potential consumer price hikes and an increased presence of Chinese assembly plants in Europe. European automakers are determined to fend off this competition with renewed vigour, while Chinese brands seek to expand their footprint.

As the EU enacts duties to combat perceived subsidy imbalances, Chinese manufacturers like Leapmotor remain optimistic about their European ambitions. Despite market challenges, both regions' manufacturers are pushing forward with new models, highlighting the collision of interests and strategic maneuvers within the industry.

(With inputs from agencies.)