China's ambitions to become a force in the European car market were on full display at the Paris Motor Show this week, where a record number of the country's automakers unveiled cutting-edge electric models despite a recent European Union decision to impose anti-subsidy tariffs on their vehicles.

At the event, designed to showcase Europe's top automakers, the displays that drew some of the biggest crowds were those from the likes of BYD, Leapmotor and Xpeng, which boasted how the speed of their technological advances -- including the use of artificial intelligence -- would help them compete with, or even surpass, their European rivals in the electric vehicle revolution.

Europe has an ambitious goal of fully transitioning to electric vehicles by 2035, and the continent's biggest carmakers -- among them Renault, Stellantis, BMW and Volkswagen -- all put forward new models aimed at appealing to European consumers. But Beijing is also eager to get in on that game, with the nine Chinese automakers at the Paris show appearing undeterred by what they view as protectionist efforts to slow their advance.

BYD, which made its European debut at the show two years ago, displayed seven models, which its officials said used electric and hybrid technology that surpassed that of its European rivals.

At the BYD stand, a large-screen video displayed landmarks from around the world, from the Christ the Redeemer statue in Rio de Janeiro to the Arc de Triomphe in Paris. It was a visual reminder of the company's ambition to make a Chinese car appealing to Western buyers.

In just a few years, BYD has grown its presence beyond China to 100 countries. In the first six months of this year, a quarter of all hybrid or fully electric vehicles sold on the planet were made by BYD, the company said.

"That's incredible," Stella Li, executive vice president of BYD, told reporters at the show, which runs through the weekend.

She criticized the tariffs imposed by Brussels this month on electric vehicles from China as unfair, a complaint echoed by other Chinese automakers.

The tariffs, which take effect Oct. 31 and will remain for five years, go as high as 45%. But both European and Chinese officials have said they are in negotiations to reach an agreement that would address Brussels' concerns about unfair advantages enjoyed by automakers in China.
Li said the company would continue its expansion into Europe, bringing a new SUV to market in France and Germany. The company said it was dropping the price on models already for sale in Europe, a move that many Chinese automakers have been making to appeal to consumers there.

Renault CEO Luca de Meo acknowledged the rising competition that Europeans face from Asian automakers. He unveiled a line of several new compact electric vehicles, including one made out of 90% renewable materials, in what he said was "a manifesto for technological innovation."

The lineup created what was probably the largest buzz around any European automaker at the show. It was "aimed at tackling challengers from the East," and beating them "if possible," he told reporters.

The challenge for European automakers is formidable. Europe is facing a drop in demand for new cars, with overall sales this year around 18% lower than prepandemic levels, according to the European Automobile Manufacturers' Association. Electric vehicle sales are declining even more, accounting for only around 12% of market share this year.

In a display of solidarity with the French automakers, President Emmanuel Macron made an appearance at the event and lingered at the Renault stand, getting behind the wheel of one of the company's new hybrid models. Macron said that he wanted to "show support for the sector."
Even so, some automakers have recognized that the challenge posed by Chinese automakers is not going away. Instead of fighting them, Stellantis, owner of the French brands Peugeot and Citroen, in addition to Jeep and Chrysler in the United States, has joined forces with Leapmotor, a leading maker of electric vehicles in China.

Stellantis bought a roughly 20% stake in Leapmotor last year. The two companies also set up a joint venture, which gives Stellantis access to the Chinese company's technology. In exchange, Leapmotor cars will have access to some 200 Stellantis dealerships in Europe.

Carlos Tavares, CEO of Stellantis, described the tie-up as one in which "both companies stand ready to benefit."

He added that "interest from our dealers and our investors is palpable and the market is hungry for tech savvy and affordable EVs." Over the long-term, the collaboration between the European and Chinese companies was "aimed at transforming the landscape of electric mobility in Europe and beyond."

Standing beside Tavares, Leapmotor's CEO Jiangming Zhu spoke in Chinese as he described an electric vehicle built by the two companies that would be affordable and appealing to European consumers' tastes and needs.

The joint venture's compact model will have a starting price of a little more than USD 19,600, a price several thousand dollars below similar European-made electric vehicle models.

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