At Stellantis, Peugeot introduced a 408 fastback. Jeep, the only full-size automotive brand besides the French, Chinese or Vietnamese ones, premiered its first BEV. The Avenger will be produced in Stellantis-Polish plant and will have a starting price just under 40k€. Lastly, if DS presented it current range, Citroën will simply absent.

 

 

Chinese OEMs clearly targeting Europe

If the German, American (besides Jeep), Japanese, Korean and British OEMs were absent, Chinese OEMs came en force, accompanied by the Vietnamese newcomer, VinFast, focusing on the BEV market. These Asian players are very clearly targeting the continent as China is already home to many all-electric OEMs. Europe is the second largest BEV market after China far ahead of the USA. In addition, it just became much more difficult for BEVs produced outside North America to be competitive in the USA. Indeed, the recently passed Inflation Reduction Act (IRA) denies buyers a potential $7,500 incentive. 

 

Chinese OEMs Xpeng, NIO, MG and Airways are already selling in several European countries but more are coming. At the show, the most aggressive OEMs was BYD (picture below). China’s EV leader presented four vehicles on a large booth, three of them definitely on their way to Europe. These are Atto 3, a compact SUV starting at 38k€, Tan, a mid-size SUV, and Han, a large sedan priced over 70k€. A mid-size sedan, Seal, is also considered. During his press conference, the BYD representative took a rather ambitious stance re. Europe, with plans to establish a manufacturing base on the old continent. 

 

Other Chinese brands on display in Paris included Great Wall’s Ora with its Funky Cat which goes on sale in Germany in Q4 2022, Donfeng’s Seres (electric crossovers “3” and “5”), Leapmotors as well as Wey (PHEVs only at this point).

Vietnam’s VinFast also had a significant presence. The emerging OEM, which produced its first vehicle in 2018 under licenses from BMW and GM, introduced its rather impressive forthcoming range of five BEVs at the CES last January. On display in Paris were Pininfarina-styled VF6, VF7, VF8 and VF9, mid- and full-size (for Europe!) SUVs and crossovers which are all coming to Europe — as well as to the USA — in the coming months. The OEM will lease batteries (starting at 120€/mo at launch) separately from the vehicle, replicating a model introduced by Renault 10 years ago. Will VinFast have the means for this ambitious plan?

 

The ambition displayed by these newcomers will likely have a positive impact on the democratization of clean mobility. However, this will essentially happen at the expense of the European industry as all these vehicles will be imported from Asia — at least initially — unless actions are taken. France is already considering limiting incentives to vehicles produced in France or at least in Europe. Will Europe enact protectionist laws at the regional level in the footsteps of the USA’s IRA (see above)? Without going all the way to full protectionism, how about aligning any inventive to the respect of underlying operating conditions, e.g. low CO2 intensity throughout the supply chain, absence of undue public financial assistance or labor conditions, to at least level the playing field. 

 

 

More Options for Frugal Urban 4-Wheeled Mobility

The price and size of the average vehicle has been continuously increasing in Europe, and even more so in the USA — consider the absurd 4.5t, $100k+ Hummer EV. Electrification is currently inflating this average price and will continue to do so until the cost of critical minerals (e.g., Nickel, Cobalt, Lithium) comes back down. Until then, an increasing portion of the population will be priced out of the market, which will also delay the shift to a clean fleet. They may however have access to much more frugal, light, electric vehicles for their urban movements. 

 

Renault introduced the Twizy light, electric 2-seater about 10 years ago. More recently, Citroën brought to the market the 7800€ Ami on the same segment, with its 8 hp motor and 5.5 kW battery. Both cars can be driven with just a moped permit. In Paris, we saw Renault’s second iteration, Duo, which was presented by the OEM’s mobility brand Mobilize, as well as at least six equivalent products by other companies.

 

Probably the most emblematic of these vehicles is the Swiss, Italian-made Microlino (picture below). With a front-opening door akin BMW’s 1950s Isetta, the 2.4m long (similar to the Ami and 100 mm shorter than the first Smart Fortwo) 2-seater offers 6-14kWh battery options for up to 230 km range, a 16 hp motor and a 90 km/h top speed for 15-22k€.