European automakers are opening the Paris motor show with palpable relief after a provisional deal between the EU and China sharply curbed Chinese hybrid exports to Europe, cutting volumes by more than half.
For Volkswagen, Stellantis, and Renault, the pact is a lifeline. The financial position of the continent’s car giants has deteriorated quickly: Mercedes‑Benz sales fell by 8% in the third quarter, with both Volkswagen and BMW warning of sharply lower profits. Chinese brands, by contrast, have surged, shipping some 770,000 vehicles to the EU in the first eight months of the year and seizing nearly 12% of the European market.
At their home show, Europe’s manufacturers are doing their best to look battle‑ready. Dacia is touting a budget EV Spring for under €18,000, and Volkswagen is unveiling the all-new ID. Tiguan. The irony was on full display at Stellantis’s stand, where the firm showed an electric Citroen concept openly built on technology from its Chinese partner Leapmotor. Chinese names BYD, XPeng, and Zeekr also arrived in Paris with expanded lineups, signaling they have no intention of ceding ground.
This temporary reprieve on imports does not solve the industry’s deeper problem. Europe remains heavily dependent on China for rare earths and battery‑material supply chains. Brussels has already begun drafting tougher rules that would require vehicles sold in the bloc to be assembled predominantly from European components.
