Europe Automakers Launch Cheaper Electric Cars to Compete With China

Several European carmakers, including Citroen, Peugeot, and Renault, have unveiled low-cost electric vehicles at the Paris Motor Show to combat a demand slump and regain market share from Chinese brands. The new models are more affordable and targeted at the mass market, which is where Chinese competition is strongest. According to Julia Poliscanova of Transport & Environment, the lack of affordable EVs has contributed to the demand slump, but with the launch of these new models, electric car sales could reach 24% market share next year, up from 14% this year. Chinese-made EVs are typically priced lower than those in Europe and the US, posing a challenge to Western automakers. Pere Brugal, president of GM Europe, views the current challenges as a transitional phase towards full-electric vehicles. GM's CEO expects the company to start making money on battery-powered models by the end of the year, with sales increasing and a new model priced under $30,000 after a federal tax credit. GM remains committed to phasing out combustion engine cars in the US by 2035. The launch of low-cost EVs is seen as a fight back by European carmakers against Chinese competition. The new models are expected to appeal to the mass market and drive up electric car sales. Overall, the industry is transitioning towards electric vehicles, with European carmakers seeking to regain lost ground.