By Nick Carey and Giulio Piovaccari
PARIS, Oct 12 (Reuters) – European and Chinese automakers were expected to unveil as many as 60 new models at the Paris car show on Monday, as competition for buyers on the continent continues to intensify.
The show comes days after the European Union announced a deal with China to cut imports of Chinese hybrid vehicles into the bloc, with a cap of 350,000 units a year, according to a European Commission official on Monday. It is still not clear how the agreement will be implemented, though it was welcomed by the region’s manufacturers.
The flood of hybrid imports into the EU is “not sustainable” for Europe, said Renault CEO Francois Provost, with the current deal “better than a trade war”.
Around 20 Chinese brands are attending the show, including BYD and Chery, double their presence at the last Paris car show in 2024 as they face a gruelling EV price war and falling sales at home.
Chinese brands have gained share rapidly in Europe in the last three years, while total 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, said analysts at Jefferies on Sunday.
Speaking at an event on Sunday evening, Volkswagen CEO Oliver Blume welcomed the progress in EU-China talks, adding: “Those who sell here should compete under comparable conditions and create jobs and value here in Europe too.”
The German carmaker’s 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, it said on Monday. Deliveries also fell in North America and Western Europe.
As part of its bid to regain lost market share in Europe, world No. 4 automaker Stellantis is launching six new models across its European brands at the show and unveiling nine concept cars, a remarkable turnaround after years of maintaining a low-key presence at shows on the continent.
During a high-profile event on Sunday evening, Stellantis CEO Antonio Filosa promised attendees they would “witness the reinvention of a European icon,” with an affordable retro electric version of the iconic Citroen 2CV aimed at fending off Chinese competition – which drew huge crowds as the show got underway.
“Our great brands never stand still,” Filosa said.
The company is also learning from the Chinese to go faster, Chief Technology Officer Ned Curic said, outlining plans to build small EVs in Pomigliano, Italy, based on the e-car platform being developed with China’s Leapmotor at Fiat’s plant in Mirafiori, Italy.
‘IF THEY DROP EXPORTS THEY DIE’
Like other Western car shows, Paris had been in decline until Chinese automakers started showing up in Europe in force four years ago.
Alongside the likes of BYD and Chery, this year’s show will feature new Chinese brands like Aito, while state-owned automaker Changan will launch two new brands – Nevo and Avatr.
The EU imposed tariffs on Chinese-made fully electric vehicles in October 2024. The European Commission is also working on legislation that would include ‘Made in Europe’ provisions, mandating minimum local content in EVs to gain access to large parts of the EU’s car market.
Agreement between France and Germany on the provisions is “imminent”, French President Emmanuel Macron said at the show. “Preserving this European sovereignty and our capacity to manufacture within Europe is crucial for us,” he said, adding that despite a “difficult” European market, companies on the continent were “innovating, advancing and accelerating”.
Major Chinese automakers have been looking for European production ahead of ‘Made in Europe’, often in partnership with legacy automakers.
In July, China’s Geely Auto said it will produce electric SUVs at a Ford Motor factory in Spain.
Speaking at an event on Sunday evening, Geely Auto CEO Alex Nan emphasised the automaker’s deepening partnership with French automaker Renault and the company’s “commitment to Europe.”
Car sales in China, the world’s largest car market, fell 20% in the first half of 2026, increasing the pressure on Chinese automakers to grow sales overseas.
As the US market is effectively closed to China’s auto industry, Europe is the top priority for its automakers.
“If they drop exports in Europe they die because they can’t make the money elsewhere,” said Francois Roudier, secretary general of the International Organisation of Motor Vehicle Manufacturers.
(Reporting By Nick Carey, Giulio Piovaccari, Gilles Guillaume and Rachel More in Paris; additional writing by Dominique Patton; Editing by Stephen Coates and Susan Fenton)
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