Model blitz at Paris motor show as Europe-China rivalry heats up

Europe’s car industry fought back against rising Chinese competition at the Paris car show on Monday with a wave of new model launches and fresh support from Brussels, even as Chinese automakers expanded their push into the region.

The show opened days after the European Union announced a deal with China to curb imports of Chinese hybrid vehicles into the bloc, with a cap of 350 000 a year, according to a European Commission official.

While details of the arrangement have yet to be finalised, it was broadly welcomed by European manufacturers, though some said more support would be needed.

Stellantis CEO Antonio Filosa said the deal was a “good milestone”, but that the Fiat maker was also seeking help with high energy costs from the Italian government and wanted Brussels to move more quickly on carbon emissions rules.

The flood of Chinese hybrid imports into the EU is “not sustainable”, Renault CEO Francois Provost said, describing the agreement as “better than a trade war”.

Zhao Fei, president of Chinese automaker Changan said he was “not that concerned” by the deal, which he viewed as a precursor to “Made in Europe” local content rules that could be dealt with by setting up production in the region.

Around 20 Chinese brands, including BYD and Chery, are attending the show , double their presence in 2024 as they seek growth overseas amid intense competition and weaker demand at home.

Chinese brands have gained share rapidly in Europe over the last three years, while Chinese exports of hybrids to the EU’s 27-member states tripled to $7.5 billion in the first half of this year, according to Chinese customs.

The EU-China deal could hit BYD, Chery and state-owned SAIC’s MG brand hardest as between them they accounted for 90% of Chinese brand hybrid sales in the EU in the first eight months of 2026, Jefferies analysts said on Sunday.

BYD said the deal amounted to short-term pressure but that it remained committed to Europe.

Underscoring the challenges facing European manufacturers, Volkswage said on Monday its deliveries fell 14.3% in the third quarter, the steepest quarterly drop in four years, dragged down by a further decline in demand in its top market, China.

Deliveries also fell in North America and Western Europe.

As part of its efforts to regain market share in Europe, Stellantis is launching six new models across its European brands at the show and unveiling nine concept cars.

On Sunday evening, CEO Filosa hailed “the reinvention of a European icon” as he unveiled an affordable retro electric version of Citroen’s 2CV.