Sparks in Paris: Auto Show Highlights Trade Conflict in the E-Mobility Sector

The starting signal for the Paris Motor Show was given amid a heated debate about tariffs on electric vehicles produced in China. The show is one of the most significant automotive events in Europe and comes at a critical time for the industry. European car manufacturers are under pressure to prove their competitiveness, while Chinese competitors seek to gain market share. However, there are also shared interests: executives from both regions expressed concerns about the consequences of EU tariffs. Stella Li, Vice President of the Chinese electric vehicle giant BYD, warned that such tariffs could make it more difficult for poorer populations to access electric cars. Stellantis CEO Carlos Tavares also delivered a cautionary message to his colleagues, pointing out that Chinese manufacturers could circumvent tariff barriers and establish plants in Europe. This could lead to overcapacity and the closure of local factories. At this year's show, nine Chinese brands, including BYD and Leapmotor, will showcase their latest models. Two years ago, the Chinese influence was even stronger, highlighting the determination of European manufacturers to defend their domestic market. Despite the narrow decision by EU member states to impose import tariffs of up to 45% on Chinese electric vehicles, the debate within the Union is not yet resolved. The EU accuses China of unfair subsidies, while Beijing threatens retaliatory measures against the European side. At the same time, European car manufacturers are facing challenges in the Chinese market. In light of weakening sales, industry giants such as Volkswagen, Mercedes-Benz, and BMW have highlighted cautious profit forecasts. There are also reports of inventory issues at Stellantis in the US, which have also led to a reduction in profit forecasts.