“A motor show held amid trade wars between Brussels and Beijing, and warnings of invasion.” (Financial Times) “The stage of battle against China’s rapid rise is the electric vehicle market.” (Automotive News)
This is an evaluation of the ‘Paris Motor Show 2024’, which opened on the 15th (local time). This year’s Paris Motor Show became a stage for European car brands, including French brands Renault and Peugeot, and Chinese electric vehicle companies, such as BYD, to compete for competitiveness. The Paris Motor Show, which started in 1898 and is held every two years, is the largest automobile exhibition in Europe and runs until the 20th.
Earlier this month, just before the Paris Motor Show, the European Union (EU) approved the highest tariff of 45.3% on Chinese electric vehicles. China attempted to persuade member states by sending high-ranking officials, including the Minister of Commerce, to the EU last month, but was unable to stop the spread of Chinese electric vehicle control theories in Europe.
France is a representative country that checks Chinese infiltration. At the pre-release site of the Paris Motor Show on the 14th, French President Emmanuel Macron told reporters, “The European market is going through a very difficult time,” and “It is time to create a level playing field.” President Macron stopped by the exhibition booths of Chinese companies such as Xpeng, and then toured the exhibition halls of domestic brands such as Renault, France’s largest automobile company.
Renault introduced the electric vehicle ‘Renault 4 E-Tech Electric’ here, which reinterprets the design of the 1960s product ‘Renault 4’. In addition, Audi (Germany)’s ‘Q6 E-Tron Sportsback’, Dacia (Renault Group)’s ‘Bigster’, and Volkswagen (Germany)’s ‘Tyron’ made their first appearance to the public at this motor show. In an interview with Reuters, Phil Dune, director of Stax, an American consulting firm, said of the Paris Motor Show, “It is an opportunity for European companies to shout, ‘This is our territory.’”
BYD, the world’s number one seller of electric vehicles, exhibited European versions of the ‘Sea Lion’ and ‘Yangwang U8’. BYD also revealed its intention to expand into Europe at the Paris Motor Show two years ago. BYD Vice President Stella Lee said in an on-site interview with media such as Al Jazeera, “We will strive to provide a higher level of functionality,” but criticized, “The tariff increase is an unfair decision that will harm consumers by raising prices.” Leap Motors, headquartered in Hangzhou, China, also unveiled the ‘B10’, known as an electric vehicle priced in the 20 million won range.
In this way, as the mode of keeping Chinese cars in check becomes stronger in Europe, Korean companies are expecting a return. A representative example is the Kia EV3. Kia, the only Korean automaker that participated in the Paris Motor Show, introduced the EV3, which is scheduled to be released in Europe at the end of this year, as its representative product.
The EV3 costs around 40 million won (domestic standard), but there are expectations that its price competitiveness will be relatively high when the EU’s tariff rates for Chinese cars are applied. Kia also showed off its technology by exhibiting the Purpose-Based Vehicle (PBV) ‘PV5’, which can specialize models depending on the purpose of use. Hyundai Mobis also set up an exhibition hall introducing autonomous driving and infotainment technology.
On the other hand, there are concerns that if this conflict continues, it could have a negative impact on the Korean automobile industry. “If the EU’s measures are expanded to other industries and China takes countermeasures such as restricting exports of key raw materials, there may be a negative impact on the supply and demand of materials and parts for Korean companies,” said Park So-young, KOTRA Frankfurt Trade Center. This is because Hyundai Motors has a European production base in the Czech Republic, and Kia has a European production base in Slovakia.
Reporter Choi Seon-wook [email protected]
