Renault leads European EV defense in Geneva as Chinese rivals expand By Reuters

By Gilles Guillaume and Nick Carey

GENEVA (Reuters) – Chinese-owned Renault and MG launched new electrified cars in Europe at the Geneva motor show on Monday, as Chinese automakers seek to take more market share from traditional European rivals.

The European auto industry is working to cut costs and launch more affordable and well-reviewed electric vehicles (EVs) to counter the arrival of cheaper Chinese models.

The strong presence of Chinese competitors at the fair, which returns this week after a four-year hiatus due to the COVID-19 pandemic, shows that “they are interested in our market, our customers”, Renault (EPA:) CEO Luca de Meo told Reuters.

Speaking to the media later after unveiling Renault’s long-awaited new electric R5, he insisted that the European car industry is “ready for the challenge”.

De Meo repeated calls to replicate the success of European airplane maker Airbus for the automotive industry by promoting deeper cooperation between automakers.

Renault itself is in early talks with Volkswagen (ETR:) to share its Twingo electric platform with the German company, it said.

The French automaker’s chief executive also said he is pushing for European Union regulation to be more flexible for small cars, to help make them more competitive.

In a sign of weakening interest from traditional automakers at most auto shows, there were fewer exhibitors than before COVID, with booths in just one hall, rather than several at the last show in 2019. US electric vehicle pioneer Tesla (NASDAQ:) does not take sides.

The R5 is at the heart of Renault’s efforts to build affordable electric vehicles. Rival Stellantis (NYSE:) will launch its electric Citroen e-C3 this year, which starts at 23,300 euros ($25,275).

Also on Monday, SAIC’s MG brand announced the European launch of its MG3 hybrid, already sold in Britain.

By selling 230,000 cars last year, MG sold two out of three cars produced in China in Europe, according to French automotive consultancy Inovev.

Inovev estimates that, including Russia and Turkey, Chinese automakers should sell more than one million vehicles across Europe in 2024.

Chinese state-owned SAIC also said its electric vehicle brand IM Motor will launch its L6 luxury electric SUV in Europe next year. IM Motors is also supported by Ali Baba (NYSE:) Group Investments.

China’s BYD (SZ:), which outsold Tesla globally in the fourth quarter, lost out to Renault Scenic in the “car of the year” award at the show.

“This is another symbol that we are back in the game,” Gilles Le Borgne, Renault’s engineering chief, said at a media event.

But the fact that the BYD Seal electric sedan was in the running for the award shows just how far Chinese automakers have come in their bid to break into the European market.

Like many other Chinese models, the Seal has achieved five-star Euro NCAP (new car assessment programme) ratings, a far cry from the crash test failures of 2006 and 2007 that marred their first attempts to enter the competitive European market.

INHERITANCE RACE

In response to the influx of low-cost Chinese models, mainstream automakers like Renault are rushing to develop electric vehicles for 25,000 euros or less.

Its new R5 copies design elements from the R5 combustion engine and the brand’s iconic Super 5, such as vertical taillights and bright colors. The two models sold more than nine million cars between 1972 and 1996. The first version of the R5 will be launched in the second half of the year with a 52 kilowatt-hour (KWh) battery with a range of 400 km (249 miles ) and a range of 400 km. list price around 30,000 euros.

So far, Chinese automakers have focused on larger, more exclusive models. But they are expected to come with smaller cars for 25,000 euros or less.

Renault said the first R5 version will be followed “as quickly as possible” by a cheaper and less powerful version of the same model – 40 KWh with 300 km of autonomy – for 25,000 euros.

($1 = 0.9228 euros)