European carmakers face their toughest rival yet: Chinese brands. Chinese firms have state support, a big lead in battery technology and low prices. Their market share is still small, about 5 percent in France and nearly 12 percent in Europe, but it keeps growing. Still, experts say it is too early to count out European brands like Kodak or Nokia. They still have their own strengths and can fight back.
This is clear at the Paris Motor Show, which opened to the public on Tuesday, 13 October. About 20 Chinese brands are present, so Europe raised its game, going from 11 brands in 2024 to 18 this year. Stellantis brought seven European brands, up from three. Five European groups, Volkswagen, Stellantis, Renault, BMW and Mercedes, still hold nearly two-thirds of the wider European market, one of the world’s biggest. In luxury cars, Europe still leads, with every big name, from Ferrari to Rolls-Royce, being European.
Europe’s biggest edge is its reputation. Chinese brands are getting famous fast, but they do not yet have deep-rooted images. BMW means sportiness, Citroen means comfort and Volkswagen means rigour. Few people can link a strong value to Chery or Leapmotor beyond price. Design is another strength. Chinese cars often look bland, and their makers have no heritage to draw on for retro models like the Fiat 500 or Citroen 2CV.
Europe is losing one advantage as electric motors replace combustion engines, and its battery efforts have been mixed. But test drives still show European cars, even electric ones, feel better to drive in comfort, handling and brakes. Their onboard screens are also easier to use, with Renault and Mercedes among the best. On batteries, Europe is not far behind. Volkswagen sold nearly 1 million electric cars worldwide in 2025, up 32 percent. Renault’s electric sales jumped 63.2 percent in early 2026. European firms are also working faster, with Renault using China to help build its Twingo in just 21 months at low prices.
Reference
Valeano, N. (2026, October 13). Au Mondial de l’auto, les constructeurs européens veulent faire valoir leurs atouts face à la Chine. Le Monde. https://www.lemonde.fr/economie/article/2026/10/13/au-mondial-de-l-auto-les-constructeurs-europeens-veulent-faire-valoir-leurs-atouts-face-a-la-chine_6793097_3234.html