(Bloomberg) —
Demand for electric vehicles is showing signs of recovering as prices for plug-in models are coming down, according to Stellantis NV and Renault SA.
“We may be getting close to a tipping point” for EV demand, Thierry Koskas, who heads Stellantis’ Citroën brand, told reporters at the Paris auto show on Monday. Renault Chief Executive Officer Luca de Meo cited an event this weekend where EVs made up 35% to 40% of sales.
Automakers are showing off a range of affordable electric models in Paris this week as they try to compete with Chinese manufacturers expanding in the region. Stellantis, Volkswagen AG and Renault are also contending with an EV demand slowdown sparked by subsidy cuts that pushed up the cost of owning a plug-in car.
Read More: European Carmakers Descend on Paris to Showcase Low-Cost EVs
Citroën is presenting EVs including the €23,300 ($25,472) ë-C3 city car, which started shipping months behind schedule in mid-September due to software issues. A €19,999 version will be launched in the first half of next year, Koskas said.
Renault unwrapped the R4 E-Tech in Paris, a compact electric model expected to cost less than €35,000, with a driving range of 400 kilometers. It’s also selling the smaller R5 that starts at around €25,000.
“When you have the product, maybe you can change” the conversations around EVs, de Meo said Monday in an interview with Bloomberg Television. At an “open door” event in France this weekend, Renault’s EV sales were at 35% to 40% of the total product mix, the CEO said, without giving more details.
De Meo also commented on the competition with China, saying the Asian nation and the West need to find new ways of competing and working together. Manufacturers led by BYD Co. are expanding in Europe despite Brussels’ decision this month to boost tariffs on their EVs as high as 45%.
“Without a good cooperation with the Chinese, I think it will be more difficult to ramp up electrification in Europe,” de Meo told Bloomberg TV, citing their strong role in providing raw materials and batteries.
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One such partnership is already operational. Stellantis has teamed up with Leapmotor to bring down the cost of owning an electric car, with several of the Chinese brand’s vehicles on display in Paris. They include the Leapmotor B10, a compact SUV aimed at younger drivers that’s expected to cost less than €30,000.
“We control all of their exports outside of China,” Stellantis CEO Carlos Tavares said about Leapmotor in an interview with Bloomberg Television.
The Peugeot maker can benefit from Leapmotor’s engineering speed and its affordable technology, Tavares said, adding that Stellantis can help the Chinese company sidestep European tariffs with its production network in the region.
“This is a competitive edge of Stellantis,” the CEO said.
(Updates with Tavares comments in 10th paragraph.)
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