Paris, France

Against the backdrop of impending EU tariffs on Chinese-made electric vehicles, the Paris Auto Show is in the midst of an intense rivalry between Chinese and European automakers. But as the industry wrestles with poor demand, this year’s show will be a decisive game changer for both sides. "China against Europe, this is the battleground they've chosen," Phil Dunne, managing director of Stax explained. 

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Pipeline manufacturers in Europe face pressure to prove their resilience, while Chinese brands aim to gain a foothold in this competitive market. Nine Chinese brands including BYD and Leapmotor are set to unveil their latest models this year. Last year, they were present on almost half of the brands but this year, their presence stands at around one in five brands, indicating a more dominant effort from European automakers fighting to keep their own space.

Last week, EU member states narrowly agreed on import duties of up to 45 percent on Chinese EVs, which they said were receiving unfair subsidies from Beijing. Chinese manufacturers responded by criticising the move but they are still keen to grow in Europe without revealing any plans to offset the tariffs by increasing prices. Andy Palmer, founder Palmer Automotive, said: 'The Chinese EV ambition is going to be on full display in Paris this week.'

This is a major step in GAC's European ambitions. The company wants to understand better the European market and to sell its Aion V, the first major EV, beyond China. He also mentioned local production as a way to avoid tariffs. Meanwhile, pricing by Chinese EV makers like BYD have been keeping them competitive to European rivals. Despite this, many struggle with brand recognition, and BYD is no exception, hoping that the Sea Lion 07 SUV will be a blip on the radar.

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For all the automakers involved, the EV market is not a simple one, with other challenges brewing in the form of changing government support for buyers in France and Germany.