Paris Motor Show Showcases EV Innovation Amid EU-China Trade Tensions

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On Tue, 15 Oct, 12:06 AM UTC

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The Paris Motor Show highlights new electric vehicle models from Chinese and European manufacturers, while tensions rise over potential EU tariffs on Chinese EV imports.

Chinese EV Manufacturers Make Strong Showing at Paris Motor Show

The Paris Motor Show, a biennial event with roots dating back to 1898, has become a battleground for electric vehicle (EV) manufacturers amid growing trade tensions between the European Union and China. Chinese EV startups are showcasing their latest models, incorporating artificial intelligence technology, despite the EU's threats to impose punitive tariffs on Chinese EV imports 12.

Leapmotor's European Expansion

Leapmotor, a Chinese EV startup founded in 2015, unveiled its compact electric-powered SUV, the B10, which will be manufactured in Poland for European buyers 1. The company also presented the T03, a smaller electric commuter car, priced competitively at 18,900 euros ($20,620) 3. Leapmotor's larger family car, the C10, will start at 36,400 euros ($39,700) in Europe 4. The company's European sales, which began in September, are conducted through a joint venture with Stellantis, the world's fourth-largest carmaker 2.

XPeng's Debut and Tariff Concerns

XPeng, another Chinese EV manufacturer, made its Paris Motor Show debut with the unveiling of the P7+ sedan 3. The company aims to deliver vehicles in Europe starting next year, with Chinese prices for the P7+ starting at 209,800 yuan (approximately 27,100 euros or $29,600) 4. However, XPeng's president, Brian Gu, expressed concerns about the EU's threatened import duties, stating that they could significantly impact the company's expansion plans and profit margins 5.

EU-China Trade Tensions

The European Union is considering imposing tariffs on Chinese EV imports due to concerns about unfair competition. Brussels claims that subsidies allow Chinese companies to undercut EU industry prices, leading to a substantial increase in Chinese-built electric cars' market share from 3.9% in 2020 to 25% by September 2023 1. The EU and China face an end-of-October deadline to find an amicable solution to this trade dispute 2.

European Manufacturers' Response

European automakers are fighting back against Chinese competition by introducing new, more affordable EV models. The show also highlights a growing market for small electric vehicles that can be driven without a full license, targeting teenagers and adults in areas with poor public transport 4.

Innovative Small EVs for New Markets

Several manufacturers are showcasing two-seater EVs that cater to younger drivers and those without full licenses. Citroen's Ami, priced at just under 8,000 euros ($8,720), is now sold in various European markets, Turkey, Morocco, and South America 5. European legislation allows teenagers as young as 14 to drive these vehicles after completing an eight-hour training course, with speed limited to 45 km/h (28 mph) 3.

Renault's subsidiary Mobilize presented the Duo, a plastic-shelled two-seater capable of traveling 100 kilometers (over 60 miles) between charges, even in cold weather 4. These vehicles are finding markets among teens, adults who lost their licenses, and those in areas with limited public transportation options 5.

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