Model blitz at Paris motor show as Europe-China rivalry heats up

The European car industry showcased a flurry of new model launches and strengthened support from Brussels at the Paris motor show on Monday, as Europe grapples with rising Chinese competition. The show commenced just days after the European Union (EU) announced an agreement with China to restrict imports of Chinese hybrid vehicles into the bloc, capping annual imports at 350,000 units, according to a European Commission official.

European manufacturers welcomed the deal, which they deemed better than a trade war, according to Renault CEO Francois Provost. Chinese automakers are doubling their presence at the Paris show compared to 2024, with around 20 Chinese brands, including BYD and Chery, attending. Chinese brands have gained significant share in Europe over the past three years, with Chinese hybrid exports to the EU's 27-member states tripling to $7.5bn in the first half of 2026.

The EU-China deal could particularly impact BYD, Chery, and state-owned MG brand, as they account for 90% of Chinese brand hybrid sales in the EU. Volkswagen CEO Oliver Blume stressed the importance of competing under comparable conditions in Europe, which could lead to job creation and value addition in the region. Stellantis unveiled six new models and nine concept cars at the show, marking a significant expansion of its presence.

Meanwhile, Renault increased its EV production plans in France by at least 50% over the next 12 months. Chinese automakers also shared their European expansion plans, with BYD potentially building a factory in France and Changan aiming to build its first European-made car in early 2027. The EU is also working on 'Made in Europe' rules for EVs, requiring minimum local content levels for market access.

Chinese automakers have been seeking European production bases ahead of the proposed rules, often in partnership with established manufacturers.