China's auto giants counter with a wave of affordable electric vehicles.

• At the Paris Motor Show, several major European car manufacturers introduced affordable electric vehicles in an attempt to revive sales and regain market share lost to Chinese brands.
• The biennial industry showcase has the potential to be a turning point for Europe's auto industry.
• According to Julia Poliscanova, senior director for vehicles and e-mobility supply chains at Transport & Environment, it seems like Europe is taking a stand.

At the Paris Motor Show, several major European car manufacturers introduced affordable electric vehicles in an attempt to revive sales and regain market share from Chinese brands.

The biennial industry showcase in Paris, running from Monday to Sunday, could mark a turning point for Europe's auto industry.

At the Paris Motor Show, Julia Poliscanova, senior director for vehicles and e-mobility supply chains at the Transport & Environment campaign group, stated that it seems like Europe is taking a stand.

Citroen, Peugeot, and Renault are all showcasing smaller, more affordable models at the event, Poliscanova stated.

"This is precisely what the mass market requires for increased vehicle sales, and it is also the most challenging competition from the Chinese," she stated.

The European car industry is facing a range of obstacles in its quest for complete electrification, including the absence of affordable electric vehicles, insufficient charging infrastructure, and an escalating trade conflict with China.

European automakers will face increased pressure next year as emissions-reduction targets take effect, prompting some to call for immediate action to avoid significant penalties.

Car manufacturers are launching low-cost EV models at the Paris Motor Show to increase sales, aware of the need to do so.

Renault unveiled the Twingo E-Tech electric prototype to the public for the first time. The company announced that the all-electric car will have a starting price of less than 20,000 euros ($21,800) when it hits the market in 2026.

Renault and Dacia, the group's brands, have unveiled their electric vehicles, the R4 and R5, respectively. The R4 is already receiving orders, while the Dacia Spring model is being marketed as one of the most affordable EVs on the market, priced under 20,000 euros.

The new compact Citroen C4 and C4 X models, launched by auto giant Stellantis, are "ideal responses" to the challenges of the energy transition.

'Affordable mobility'

According to Transport & Environment's Poliscanova, despite the belief that people have lost interest in electric vehicles (EVs) and there is no consumer demand, this is not entirely accurate.

"In Europe this year, due to the lack of affordable models, people are not purchasing overpriced premium vehicles. Nevertheless, once vehicles become available at a more reasonable price next year, people will rush to buy them."

According to Poliscanova, the introduction of several low-cost electric vehicles could result in electric cars accounting for up to 24% of the market share next year, compared to the current 14%.

Beijing poses a challenge for Western automakers to keep up with the lower prices of Chinese-made EVs, which typically cost less than half the prices seen in Europe and the U.S. last year, according to JATO data.

In the first half of 2023, the average retail price of a battery electric car in China was approximately 31,000 euros, according to JATO. In contrast, the average retail price of a battery electric car in Europe and the U.S. was over 66,000 euros and 68,000 euros, respectively.

At the Paris Motor Show on Monday, Dacia CEO Denis Le Vot stated that people are searching for affordable mobility, according to CNBC's Charlotte Reed.

The Spring is currently undergoing a complete renovation with a new design for the 2024 edition, a new engine, 64 horsepower, a new steering system, and new electronic architecture, all for under 20,000 euros. This is a rare find among full electric vehicles in Europe at such a low price.

Dacia continues to offer affordable mobility in the EV market, with over 150,000 Spring models sold in Europe, according to Le Vot.

'Never a linear growth story'

GM Europe's president and managing director, Pere Brugal, stated that the difficulties confronting Europe's automotive sector should be viewed as a period of transition rather than a crisis.

Brugal stated in an interview with CNBC at the Paris Motor Show that the transition to new technologies and behaviors does not follow a linear growth pattern, but rather leads to the widespread use of full-electric vehicles.

Changing learned behaviors is the main challenge for the industry, according to Brugal, rather than physical or technical obstacles.

Although there is already a comprehensive network of charging infrastructure in Europe, increasing investment in public charging stations will further enhance electric vehicle mobility.