Europe’s biggest automakers are set to unveil new EV designs at the upcoming Paris Motor Show.
While the annual event typically highlights cutting-edge technology and fresh designs, this year’s focus will be on affordability. The change comes as manufacturers grapple with falling demand, stiff competition from China, and efforts to recover lost market share.
European Carmakers Face Over €10bn in Fines for Missing EU Emission Targets
Adding to these pressures, EU’s leading carmakers are now bracing for potential fines exceeding €10 billion as new EU emissions standards take effect next year. This created issues for companies like Stellantis NV, Renault SA, and Volkswagen AG, as they have to prioritize compliance with meeting stringent emission rules over the production of affordable EV options. Invariably, this has affected EV sales.
The root of this problem can be traced to last year when the EU scaled back incentives for switching from traditional combustion engines to electric vehicles. This reduction in incentives led to a reduction in EV adoption, leaving major automakers scrambling to attract new buyers.
The situation is set to worsen. Under the new EU emissions rule, automakers must significantly cut carbon emissions across their entire fleet by increasing the share of electric and hybrid vehicles.
The EU has agreed upon the new Euro 7 standards, which aim to set more adequate rules for vehicle emissions.
These new rules will help:
🛣️ industry move to zero-emissions cars and vans
☁️lower air pollutant emissions from road transportSee → https://t.co/rH1ILLUYbc
— EU Council (@EUCouncil) December 18, 2023
Failure to comply could result in massive penalties, further straining a sector already struggling with cost-conscious consumers and slowing EV sales.
For many manufacturers, meeting these new targets isn’t just a matter of investment; it’s a race against time and market conditions.
Renault, one of the key players, is leading the charge for budget-friendly options. At the Paris Motor Show, the French automaker will unveil new plug-in models like the R4, priced under €35,000, and the R5, a €25,000 electric adaptation of its classic 1970s gasoline car.
Renault R5 un arrière très bien fini !
Venez le découvrir dans notre essaie complet sur YouTube :https://t.co/TyEf3lTmM3#renault #R5 #renault5 #voitureelectrique #disign #essaie #france pic.twitter.com/nsjAgiQxIs
— Mac4Ever (@Mac4ever) October 10, 2024
Despite this push, European automakers face a formidable rival in high-quality but affordable Chinese EVs.
Companies like BYD, short for Build Your Dreams, are making aggressive inroads into the European market, with plans to sell models in Germany between €25,000 and €30,000. BYD has also acquired its German distributor, Hedin Electric Mobility, to tighten its grip on one of Europe’s key automotive regions.
In response to the intensifying competition, EU countries recently voted to impose tariffs of up to 45% on Chinese-made EVs, hoping to level the playing field for domestic manufacturers.
EU tariffs on EV imports from China create lose-lose situation pic.twitter.com/kq2bpgRNXu
— CGTN (@CGTNOfficial) October 6, 2024
However, Chinese automakers are undeterred. According to the report, BYD plans to showcase its EV lineup at the upcoming Paris show, positioning itself as a direct competitor to both European brands and U.S. giant Tesla.