Major offensive by European car manufacturers: The price war over electric cars enters the next round

Europe's renowned automakers are using the Paris Auto Show to address the pressing issue of pricing. In response to the sluggish acceptance due to the high acquisition costs of electric cars, companies such as Stellantis, Renault, and Volkswagen plan to showcase their latest affordable electric models to revive the stalled market. The decline began when government incentives for switching to electric vehicles were reduced. The challenges for these new models are enormous. Chinese competitors like BYD are gaining market share in Europe with more affordable models. If European manufacturers fail to increase their electric car sales, they face significant penalties running into millions for failing to meet strict emissions targets. Renault is taking a leading role in affordability by presenting the R4 model in Paris, which is expected to cost less than €35,000, and the new R5, an electric version of a gasoline model from the 1970s, for €25,000. The Paris show could represent a turning point for Europe’s automakers, who have so far struggled to develop affordable electric cars. Software issues, high labor costs, and expensive components such as batteries have weighed on the industry. To maintain margins, many have focused on premium models. This strategy, coupled with the withdrawal of subsidies in countries like Germany and Sweden, has driven the average electric car price to over €45,000. This makes electric vehicles unaffordable for many Europeans. **Chinese Competition** Several Chinese manufacturers, including BYD, are also present in Paris. BYD is introducing affordable models and the luxury technical presentation of the Yangwang U8 SUVs. Xpeng is showcasing a new version of its P7+ sedan, which aims to compete with more expensive midsize models from European manufacturers. Even though some other Chinese automakers are absent from the fair, many representatives have found their way to Paris to discuss potential partnerships and market trends. **Stellantis** Stellantis is taking a different approach by partnering with the Chinese company Leapmotor to reduce the costs of their electric vehicles. The Leapmotor B10-U model is among those being showcased in Paris. The Citroën brand, known for affordable vehicles like the 2CV, is also presenting some budget-friendly electric models, including the new C3 Aircross. With a starting price of €23,300, the Citroën ë-C3 is causing a stir, although its market launch was delayed due to software issues. **VW** Volkswagen, on the other hand, is refraining from new releases in Paris, instead opting to showcase slightly updated models like the Elroq and the ID GTI Concept. This marks the vision of an affordable electric Golf. The success of the upcoming ID.2all, with a sale price of €25,000, could present the decisive test. **BMW** The luxury car manufacturer BMW is also focusing on budget options in Paris, presenting alongside more expensive models, Chinese-produced mini cars. The company is also unveiling an electric concept vehicle for an entry-level SUV. Renault's Dacia is introducing the Bigster, a larger SUV, to counter rising costs in the segment. The Paris show might finally bring more affordable electric models to Europe, as Serge Gachot, Director of the Paris Show, explained: "We are finally seeing smaller and more affordable electric vehicles emerge.