Oldest covered market in Paris 'completely destroyed' in overnight fire

European and Chinese automakers are set to unveil approximately 60 new models at the Paris car show on October 12, as they vie for market share on the continent. This year's show follows the EU's agreement with China, which could reduce Chinese hybrid vehicle imports to the bloc by over half, though the specifics of the arrangement remain undisclosed.

Around 20 Chinese brands are participating in this year's event, including BYD and Chery, a notable increase from last year. Chinese automakers are competing fiercely in the European market, driven by the rapid growth of their presence over the past three years. According to Jefferies, the EU-China deal may impact BYD, Chery, and state-owned MG brand the most, as these companies account for 90% of Chinese hybrid sales in the EU during the first eight months of 2026.

Volkswagen CEO Oliver Blume expressed his support for the EU-China trade talks during a recent event, emphasizing the need for a level playing field in European markets. Stellantis, the world's fourth-largest automaker, is launching six new models across its European brands at the show, unveiling nine concept cars in a bid to regain lost market share. CEO Antonio Filosa unveiled an affordable retro electric version of the iconic Citroen 2CV to counter Chinese competition.

In contrast to previous European car shows, the presence of Chinese automakers has significantly increased in recent years, contributing to a decline in Western shows. This year's show will feature new Chinese brands such as Aito and state-owned companies Changan, which will launch two new brands: Nevo and Avatr. The EU has imposed tariffs on Chinese-made fully electric vehicles since October 2024, and the European Commission is developing legislation to mandate minimum local content in EVs to gain access to a significant portion of the EU car market.

External factors, such as the 20% decline in car sales in China during the first half of 2026, have compelled Chinese automakers to seek growth opportunities abroad. Europe is their top priority, given the US market's inaccessibility to Chinese auto companies. Francois Roudier, secretary general of the International Organisation of Motor Vehicle Manufacturers, warned that if Chinese automakers fail to sell in Europe, they risk going out of business.