The European car market is about to collapse as the recession begins and inflation is felt. With the festival’s expansion from China, brands are now advocating coverage that opposes unfair imports and need more government subsidies for electric vehicle sales.
One investment bank expects it to generally halve by 2023.
International car shows mean the global auto industry can make its case, yet only a handful of executives attended the Paris Motor Show.
The CEO of Stellantis, Carlos Tavares, sought that Chinese imports get the same remedy as European exports to China. Europe imposes a 10% tariff on Chinese car imports, but cars travelling in the other direction pay between 15% and 25%. Electric offensive at the BYD-led exhibition that featured the compact SUV, the Atto, the Tang midsize SUV and the Han midsize sedan. Great Wall showcased its Ora Funky Cat. La European industry is a little nervous about this, however, many of those sedans and SUVs of unknown brands will compete directly with BMW, Audi and Mercedes. The unknown brand that opposes the Germans usually ends up in only one direction.
Electric cars dominate the show, headlined by the Renault 4ever compact SUV, Stellantis’ Jeep Avenger and Fisker Ocean. There were some small city vehicles, which added the Renault Mobilize Duo and the Microlino recently introduced in Italy. These are known as “quadricycles” in Italy. France and means that they are very slow and therefore do not require a driver’s license. Protection standards are lightweight. One Chinese candidate is called XEV Yoyo, which also provides battery change service. It remains to be seen how these dangerous, slow, and strange machines behave in the adult market.
Renault CEO Luca de Meo said the long-planned decline in battery value, a key component of electric vehicles’ long-term competitiveness with ICE cars, has reversed. It hadn’t happened and was unlikely to happen anytime soon.
“I don’t see that parity coming close,” he told reporters on the show.
The case for electric car subsidies came at least for France when President Emmanuel Macron announced a program that gave other low-income people greater opportunities to buy electric cars.
The 2022 Paris Motor Show was the first Paris show since 2018 due to the Covid pandemic, and many global automakers did not attend. And not just because of the coronavirus. Manufacturers are no longer convinced with the concept of car displays. They are expensive and there are better tactics for launching new products. Volvo (owned by Geely of China) Polestar recently unveiled its 3 SUV in Copenhagen, where it didn’t have to make headlines. . Mercedes is not featured in the exhibition but has unveiled its EQE electric SUV at the Rodin Museum in Paris. Volvo will launch its large EX90 next month. BMW unveiled its M2 ahead of the Paris Motor Show.
The absence included Fiat, Maserati and Alfa-Romeo of Stellantis, VW and its subsidiaries Audi, Porsche, SEAT and Skoda, BMW and Mini, Hyundai and its subsidiary Kia, Jaguar Land Rover, Toyota and Lexus, Mercedes, Subaru, Volvo and Ford.
European markets are weakening and this is expected to increase in 2023. ACEA, the European automakers’ deal, expects sales in the European Union (EU) to fall 1% this year after forecasting a return to growth. In 2022, markets were stagnant at best, but gains were maxed out due to conditions. The chip shortage has set vital overall sales targets and forced most automakers to sell fewer vehicles, but has ensured they are vehicles with maximum profit margins.
Investment bank UBS expects brands to post strong third-quarter earnings soon, but they will get drastically worse thereafter. Next year, UBS said profits consistent with the consistent percentage for major European and U. S. brands would fall about 50%.
“We recently lowered our global production outlook to 0 expansion in 2023, despite getting better chip supply. Demand destruction no longer turns out to be an indistinct risk, but it has begun to become a reality,” UBS said in a report. .
The Renault 4Ever Trophy is presented on the first day of the Paris Motor Show on October 17, 2022. . . . [ ] (Photo by Eric PIERMONT/AFP) (Photo by ERIC PIERMONT/AFP Getty Images)
“We expect (European manufacturers) to be affected by 4 next year.
1) Global automotive markets that are moving from an inadequate source to an excessive source, leading to significant value pressure.
2) A product that weakens because consumers have to downgrade.
3) Inflationary pressures that are transmitted.
4) Higher credits and decrease in residual values
Hamburg’s Berenberg Bank that things look bleak for Europe in 2023.
“While there has been no significant erosion of car demand so far this year, there seems likely to be weakness in 2023. We have lowered our profit outlook for the second half of 2023 (automakers) due to further erosion of the price mix, namely in customer vehicle segments,” the bank said in a report.
Professor Ferdinand Dudenhoeffer, director of the Centre for Automotive Research (CAR) in Duisberg, Germany, said the mood in Paris is bleak, with the show itself a shadow of its former self, along with gloomy economic customers for Europe.
“Automotive markets in Europe will be locked down in 2023 while the Chinese car market is accelerating. And the U. S. The U. S. is up and running thanks to the Biden administration’s Inflation Reduction Act with its “green” spin. adjusting a market for electric cars and may overtake the EU by 2023,” Dudenhoeffer said.
Stellantis’ Tavares feared that Chinese automakers would simply identify themselves in Europe by promoting loss-making cars.
“The European market is wide open to the Chinese and we don’t know if their strategy is to take the market share at a loss and increase costs later,” Tavares said, according to Automotive News Europe.
Tavares also reiterated his call for the EU to water down its plan to ban sales of new ICE cars until 2035, which has also slowed sales of plug-in hybrid cars from 2030.
Tavares has said in the past that if new cars are too expensive for Europeans in terms of average income, there may be a major political storm.
“The dogmatic resolution that has been made to ban the sale of internal combustion cars (ICE) in 2035 has social consequences that are manageable,” Tavares said.
The Paris Motor Show – Paris Motor Show 2022 – “Revolution Is On” – will take place until October 23 at Paris Expo Porte de Versailles.