Several major European car manufacturers launched low-cost electric vehicles (EVs) during the Paris Motor Show this week, aiming to boost sales amid a demand slump and reclaim market share from Chinese competitors, CNBC reports.
The biennial showcase, which runs from Monday to Sunday, is being viewed as a potential turning point for the continent’s auto industry.
“It feels like Europe is fighting back,” said Julia Poliscanova, senior director for vehicles and e-mobility supply chains at the campaign group Transport & Environment.
She emphasized the significance of the many affordable models being showcased.
“There are so many new models on show, and what is really great is that there are a lot of launches that are more affordable. Citroen, Peugeot, and Renault are all introducing smaller, cost-effective models,” Poliscanova said.
The push for affordable electric vehicles comes as European automakers face multiple challenges in transitioning to full electrification. These include a lack of low-cost options, slow development of charging infrastructure, and increasing competition from Chinese brands, which often offer EVs at significantly lower prices. For instance, the average retail price of a battery electric car in China was approximately 31,000 euros in the first half of 2023, compared to over 66,000 euros in Europe and 68,000 euros in the US during the same period, according to data firm JATO.
Amid this competitive landscape, European carmakers are eager to stimulate EV sales, especially with stricter emissions-reduction targets set to take effect next year. Some industry experts are calling for urgent measures to avoid heavy fines due to potential non-compliance.
Renault, one of the participating manufacturers, showcased the Twingo E-Tech electric prototype, which is expected to start at under 20,000 euros ($21,800) upon its market debut in 2026. The automaker also introduced a small electric SUV, the R4, and is already receiving orders for its electric R5 model. Dacia, Renault’s subsidiary, highlighted its Spring model as one of the most affordable EVs available, also priced below 20,000 euros.
Auto giant Stellantis presented the new compact Citroen C4 and C4 X, calling them “perfect examples” of the company’s response to the ongoing energy transition. Dacia CEO Denis Le Vot emphasized the importance of affordable mobility, noting the significant demand for EVs priced below 20,000 euros. He reported that over 150,000 Spring models have already been sold in Europe.
Transport & Environment’s Poliscanova argued that the narrative around a lack of consumer demand for EVs is misleading.
“This year in Europe, we did not have affordable models, so people are not buying those overpriced premium vehicles. However, as soon as vehicles come in the right price range next year, people will flock to buy them,” Poliscanova stated.
Poliscanova predicted that low-cost EVs could capture up to 24% of the market share next year, an increase from 14% this year.
