STORY: The Paris auto show kicked off on Monday (October 14) with tensions over tariffs on Chinese-made electric vehicles taking center stage.
The event is the largest car show in Europe and comes at a crucial time.
Struggling European carmakers must prove they can still compete.
While Chinese rivals want to gain a foothold in a competitive market.
However, there was common ground.
Executives from both regions warned of the dangers of EU tariffs.
Stella Li is vice president of Chinese EV giant BYD.
She said tariffs could deter poorer people from buying electric vehicles.
Carlos Tavares, CEO of Stellantis, also warned that the tariffs could lead to Chinese carmakers setting up factories in Europe.
That would increase overcapacity in the region and push some local manufacturers to close factories.
Nine Chinese brands, including BYD and Leapmotor, will unveil their latest models at this year's event.
Two years ago, Chinese carmakers made up almost half of the brands present.
This year they represent only about a fifth of the brands.
This is thanks to a much stronger response from the European car industry – a sign of its determination to defend its home base.
Earlier this month, EU member states narrowly backed tariffs of up to 45% on Chinese-made electric vehicles, although opinion was divided within the bloc.
The EU wants to respond to what Brussels calls unfair subsidies from Beijing to Chinese manufacturers.
Beijing denies unfair competition and has threatened countermeasures.
European car manufacturers have now gone through a difficult period.
German giants Volkswagen, Mercedes-Benz and BMW all issued profit warnings, largely due to the weak Chinese market.
Stellantis also lowered its profit forecast due to inventory issues at its U.S. operations.
