Paris Motor Show 2024: Chinese manufacturers on the offensive in a rapidly expanding market
The 2024 Paris Motor Show was marked by the record presence of Chinese electric vehicle manufacturers. But does this mean that Europe is really a conquered territory?
While the market share of electric cars continues to grow, registrations slowed in August 2024. We take a closer look at this fast-changing market to understand the advantages that Chinese carmakers have over their European rivals.
How is the European electric car market faring?
The European market represents a major strategic opportunity for Chinese electric car manufacturers.
In 2023, plug-in hybrids and 100 % electric vehicles accounted for 37 % of the Chinese market, while this figure was only 22 % in the European Union. This highlights a significant growth potential for Chinese brands who want to increase their market share in a region where the transition to electric vehicles is increasingly favoured by government policies.
Despite this, sales of electric cars have recently undergone a significant slowdown this year 2024with a modest increase of 1.4 % of new vehicle registrations, totalling around 7.2 million units.
While countries such asSpain and Italy posted positive performancesmajor markets such as France and Germany have stagnated or declined, posting declines of -0.5 % and -0.3 % respectively.
To consult : Slowdown or new start? Electric car sales
Several factors explain this decline:
- the reduction of public aid,
- rising raw material costs,
- and supply chain disruption,
Despite this, the demand remains strongwith a 68 % increase in sales of used electric cars in the first half of 2024 and 25 % of new registrations of private customers in France are electric.
The competitive advantages of Chinese electric vehicle manufacturers
As a reminder, Europe's strategy to encourage consumers to adopt electric models and to develop recharging infrastructures has enabled China to rank among the world's top countries in terms of electric vehicles. Top 5 countries worldwide in terms of adoption.
As a result, Chinese manufacturers are now targeting theEurope as a strategic export market. The main reason, highlighted by the specialist consultancy Jato Dynamics in its latest report, is theundeniable economic advantage.
Electric vehicles manufactured in China are generally ⅕ cheaper than models assembled in the EU.
In addition, the firm also points out that a an electric car is 33% cheaper than a combustion carthe exact opposite of France. To back up these comments, the The average price of electric vehicles in China is €48,600, compared with €67,721 in Europe.. This significant gap goes a long way towards justifying the challenges associated with the transition to electric vehicles in the West.
But that's not all: the Chinese manufacturers invest heavily in research and developmentThis enables them to offer cutting-edge technologies, particularly in the areas of :
- batteries,
- and artificial intelligence.
For example, BYD has developed lithium-iron-phosphate (LFP) batteries that offer a best autonomy and increased safety. What's more, Chinese electric vehicles are often equipped with autonomous driving systems and connected functions more advanced than their European competitors.
Last but not least, the Chinese manufacturers benefit from substantial support from the governmentwhich encourages the export of electric vehicles through grants and partnerships. This gives them an extra edge in a market where environmental regulations are becoming increasingly strict in Europe.
Faced with this Chinese onslaught, the future of the European automotive market remains uncertain. European manufacturers will have to innovate and adapt quickly to meet consumer expectations and compete with China's industrial might.
What are the challenges facing Chinese manufacturers in their bid to conquer Europe?
China is strengthening its influence on the European market, taking advantage of its status as the world's leading exporter of vehicles. To put this in context, in 2019Chinese electric vehicles accounted for only 0.5 % of total sales. At 2023This share has risen considerably to 8,2 %.
This leadership is accentuated by the fact that half of the world's electric cars are on the road in China. In addition, the main suppliers of batteries for electric vehicles are Chinese, with an estimated combined market share of 50 %, dominated by CATL and BYD.
As a result, the European Union, in search of a new role for itself in the global economy, has been forced to rethink its strategy.s sound reduction carbon footprint and stimulating local production of electric vehicleshas decided to impose additional customs duties as well as removal of environmental bonus on electric cars from or assembled in China for combating Chinese competition and dumping.
These measures make theaccess to Chinese electric vehicles more expensive for European consumers. Many popular models, such as the Dacia Spring or the Volvo EX30This is slowing down the adoption of electric vehicles in Europe.
For more information : Tax on Chinese electric cars: the impact on Europe
This situation has generated fears among European manufacturers, who rely heavily on the Chinese market for their sales. Germany, France and other major European economies could thus suffer the consequences of potential trade retaliation by China. And that's what's happened: since 2012, Volkswagen records lowest sales ever in China while Chinese competitors see their position strengthened.
Nevertheless, Chinese manufacturers have not said their last word. They are implementing various tactics to gain a foothold in the European market. They take advantage of their production sites in Europe to circumvent restrictive regulations introduced by the European Union.
Chinese brands out in force at the 2024 Paris Motor Show: the top 5
Despite an environment less conducive to their development - customs duties and the slowdown in the electric vehicle market, as explained above - several Chinese brands are embarking on European expansion imminently.
New Chinese brands this year include :
- Aito,
- GAC,
- Hongqi,
- Forthing,
- and Skyworth.
Worth noting Not all the cars on show are purely electric: some have hybrid powertrains or electric options with range extenders, as a way of getting round European restrictions on electric vehicles.
So what conclusions can we draw from the 5 Chinese brands exhibited at the Paris Motor Show that made the biggest impact?
Read more : Paris Motor Show 2024: the new electric cars to come
BYD: the Chinese leader in electric vehicles
The 2024 Paris Motor Show was marked by the onslaught of Chinese manufacturers. Among them, BYD has established itself as a key player.
Founded in 1995, BYD (Build Your Dreams) took advantage of the show to present its Sealion 7 ("sea lion"This electric family SUV is part of BYD's range of marine-themed vehicles. The latter, direct rival of Tesla Model Y:
- a fast charging,
- thanks to its dual-gun technology
- a cutting-edge technology,
- thanks to its Cell-to-Body (CTB) technology
- and a substantial autonomy.
- 610 km (CLTC cycle), or 550 km (WLTP cycle)
For further information : BYD Sealion 7: The new Chinese electric challenger to the Tesla Model Y
But that's not all: BYD will also be introducing, for the first time in France, its Yangwang premium range with its impressive Electric SUV U8, which develops :
- a 0 to 100 km/h in 3.6 seconds,
- a maximum speed of 200 km/h,
- and a power of around 1,200 bhp.
What's more, this SUV has 4 enginesone for each wheel, powered by a battery and a combustion engine to extend its range.
💡Did you know ? This SUV is described as "one of the safest in the world", and can even float on water for 30 minutes.
BYD's ambitions are clear: to become the European leader in electric vehicles by 2030, by focusing on attractive prices.
Leapmotor: the future of affordable, high-performance electric vehicles
The presence of Chinese manufacturers in the halls of the Paris Motor Show is sometimes surprising. It is in the heart of the Stellantis stands (Citroën, Peugeot, Fiat, DS...) that Leapmotor is installed.
You may also be interested in this article about Stellantis : End of Carlos Tavares' term at Stellantis: What legacy for electric cars?
Stellantis has formed a joint venture with this brand (51 % - 49 %) from 2023 targeting markets outside China, in addition to acquiring 20 % of its capital. To date, 2 models are already available in the Stellantis network, with approximately 100 points of sale planned by the end of the year.
The first being the electric city car Leapmotor T03offering a 265 km range and positioning itself as a direct competitor to the Dacia Spring and the Citroën ë-C3for a price under €20,000.
Read more : New Citroën ë-C3: the affordable electric city car available on social leasing!
The second is the top-of-the-range electric family SUV Leapmotor C10, with the following features:
- 218 c,
- 420 km range,
- 30-80 % in 30 minutes,
- and a competitive price of 36 400 €.
XPeng: electric SUVs that combine power and intelligence
We have XPeng at the Paris Motor Show with 2 electric SUVs. This Chinese manufacturer is aiming for a presence in 35 towns by the end of the year.
Initially, the model G6 aims to make itself known to the general public in order to fill its order book, which has been open in France since June 2024.
- price From €42,990,
- batteries 435 to 570 km range,
- 3 versions available between 258 and 476 bhp.
Read on for more information : Chinese electric vehicle manufacturer Xpeng sets out to conquer the French market
Also imported to France in the summer of 2024, the G9 SUV impresses with :
- 11.6 kWh / 100 km,
- architecture of 800 V,
- batteries 60 and 76 kWh,
- 10 - 80 % Approx. 20 minutes.
At the same time, the brand unveiled its big electric saloonthe Xpeng P7+, whose arrival in Europe, scheduled for 2025, is still under discussion.
Maxus: comfort and electric performance for everyone
On the other side, Maxuspart of the SAIC group (like MG with no stand of its own), is promoting its eDeliver5a electric van with a modern design that illustrates the expansion of Chinese manufacturers in the electric commercial vehicle segment.
Specially designed for urban deliveries, here are some of the features:
- prices start at 38 990 € EXCL,
- range of 335 km (WLTP cycle),
- 1,125 kg payload capacity,
- and a Load volume ranging from 6.60 m³ to 8.9 m³..
What you need to know SAIC: SAIC is facing more difficulties in China than in Europe, where its market share has fallen from 4 % in 2023 à 3 % this year.
GAC: the future of electric cars is coming to Europe
At the same time, we are seeing the emergence of GACis one of the biggest manufacturers on the Chinese market in terms of volume (the 7th in 2023), even though the brand is seeing its sales fall steadily in its local market.
This manufacturer plans to establish itself in France in the coming months. It will be taking part in the Paris Motor Show 2024 with 6 models, including the new Aion V.
This electric SUV, a rival to the Tesla Model Y, is presented as the The brand's 1st model designed specifically for the European market.
Here are some technical specifications:
- 0 to 100 km/h time: 7.9 seconds,
- autonomy between 520 and 750 km,
- 3 different batteries 62 kWh, 75 kWh and 90 kWh,
- 2 power levels 150 kW (203 bhp) and 165 kW (224 bhp).
Summary table of the top 5 Chinese brands in force at the 2024 Paris Motor Show
| Brand | Flagship models | Key features | Expansion strategy |
|---|---|---|---|
| BYD | - Sealion 7 - Yangwang U8 | - Sealion 7: 550 km range (WLTP), rapid charging - U8: 1200 bhp, 0-100 km/h in 3.6s, can float on water | Aiming for European leadership by 2030 |
| Leapmotor | - T03 - C10 | - T03: 265 km range, < €20,000 - C10: 420 km range, 218 bhp, €36,400 | Partnership with Stellantis, 100 points of sale planned |
| XPeng | - G6 - G9 - P7+ | - G6: 435-570 km range, from €42,990 - G9: 800V, recharges 10-80% in 20 min | Presence in 35 cities by the end of the year |
| Maxus | eDeliver5 | - 335 km range (WLTP) - Load capacity: 1125 kg - Volume: 6.60-8.9 m³. - Price: from €38,990 excluding VAT | Expansion in the electric commercial vehicle segment |
| GAC | Aion V | - 520-750 km range - 150-165 kW (203-224 bhp) - 0-100 km/h in 7.9s | Plans to relocate to France in the near future |
Conclusion
The 2024 Paris Motor Show clearly demonstrated that the electric car has become the future of mobility. Chinese manufacturers, with their innovative modelstheir competitive prices and their government supporthave taken a leading position in this fast-growing market.
Indeed, with brands such as BYD, Leapmotor and XPeng making their mark with technological innovationsand attractive designsand competitive pricesBut there's no denying that the competition is intensifying.
While sales of electric cars in Europe are stagnating in the face of various challenges, the determination of Chinese brands to conquer this market offers fascinating prospects for consumers looking for sustainable and affordable alternatives.
However, in an environment where the choices are increasingly varied, it is crucial to stay informed and to surround yourself with the right people to make the best choices. This is where BeevBeev is the ideal solution to help you make the transition to electric vehicles. With expert advice, tailored services and support every step of the way, Beev is an indispensable ally as you navigate this new era of mobility.
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