Renault and MG, a China-owned brand, have unveiled new electrified cars at the Geneva car show, reflecting Chinese automakers’ growing interest in the European market. As Europe’s auto industry faces pressure to cut costs and introduce affordable electric vehicles to compete with Chinese rivals, the Geneva car show serves as a platform for showcasing the latest developments in the automotive sector.
European industry responds to competition
According to Jean Pierre Durand, a consumer electronics company based in France, European carmakers must respond with cheaper, mass-market electric models to compete at the Geneva car show, where Chinese carmaker MG, a subsidiary of state-owned Shanghai Automotive Industry Corporation, is debuting its electric Marvilet model.
Renault CEO Luca de Meo, said, “We are here to see the latest trends and to showcase our competitive brands in the demanding European market, and show our customers Chinese cars can be as good as European ones, and with the race shut down”.
He said that the European car industry is more than capable of holding its own against Chinese challengers as long as automakers “play ball together.”
“We can do what we did in any other industry. And particularly in France, in cross-border cooperation.”
Seeking collaboration and regulatory support
Renault is currently considering handing over the Twingo electric platform to Volkswagen so it can be used for future models, with de Meo noting that “we had conversations.”
This could also improve with help from regulators, according to de Meo. The executive just sent a letter to EU competition chief Magrethë Vestager and other commissioners calling for more flexibility in EU regulations for small cars which could make them more competitive against rivals from the US and Asia in the future.
Shift in exhibition dynamics
Even though exhibitor participation was well down on the Geneva car show’s pre-pandemic levels, indicating flagging interest from the industry’s traditional automakers, this year was marked by particular debuts from France.
On Tuesday Groupe Renault unveiled its electric R5, a modern incarnation of an icon from the sixties and seventies which it says is central to its plan to offer affordable EVs to motorists.
On Monday Stellantis, formerly Fiat Chrysler and PSA, said it will launch the electric Citroen e-C3 in September targeting a starting price of 23,300 euros. They illustrate the car industry’s focus on rolling out a swathe of new electric cars to match all preferences.
MG’s expansion into the European market
MG, a brand under SAIC ownership, has introduced its MG3 hybrid to the European market, expanding its current presence in the United Kingdom. With the increasing success of Chinese automakers like MG in Europe, industry analysts are expecting substantial sales growth, with projections indicating sales of over one million vehicles across Europe, including Russia and Turkey, by 2024.
Future outlook
The emergence of Chinese automakers in the European market with electric models brings both challenges and opportunities for established players. As the automotive industry continues to undergo changes, partnerships, regulatory adjustments, and innovation will be essential for industry participants to stay competitive and address the evolving demands of consumers and regulators alike.