In a bid to boost Europe’s electric vehicle (EV) market, major automakers are showcasing new, lower-cost EV models at the Paris Auto Show.
A Potential Turning Point
This biennial event, running from Monday to Sunday, is seen as a potential turning point for the European auto industry.
“It feels like Europe is fighting back,” said Julia Poliscanova, senior director for e-mobility at Transport & Environment, speaking with CNBC. “We’re seeing a lot of affordable new models, especially from Citroën, Peugeot, and Renault. This is exactly what’s needed for the mass market, where competition with China is toughest.”
European automakers face challenges in fully electrifying their fleets, including a lack of affordable options, slow rollout of charging infrastructure, and ongoing trade tensions with China, according to Ziare.
Starting next year, stricter emissions regulations will further pressure carmakers, pushing them to increase EV sales to avoid hefty fines.
Renault, Citroën and Dacia in the game
At the show, Renault debuted the Twingo E-Tech, an all-electric model expected to cost under €20,000 ($21,800) when it launches in 2026. The company also introduced the electric R4 SUV and is already taking orders for the electric R5. Dacia, Renault’s budget brand, presented its updated Spring model, which is also priced under €20,000, making it one of the most affordable EVs on the market.
Meanwhile, Stellantis unveiled its compact Citroën C4 and C4 X models, which are designed to meet the challenges of the energy transition.
Poliscanova noted that consumer interest in EVs remains strong, despite a slowdown in sales of premium models. She expects that with more affordable EVs hitting the market next year, the market share for electric vehicles could rise from 14% to 24%.
The competition with China is particularly fierce, as Chinese EVs are typically priced at around €31,000 ($33,800), far below the average €66,000 ($72,000) price tag for European models.
