European Auto Industry: Challenges and Strategies at the 2026 Paris Motor Show
Arnaud Aymé outlines a strategic roadmap for the European auto industry to regain competitiveness against Chinese manufacturers through industrial transformation, software control, and platform mutualization.
Newsnibs Staff
- 2026-10-14
- Updated 5:42 AM UTC
(Paris, France)
Arnaud Aymé, speaking at the Paris Motor Show, laid out a picture of a European auto industry that has lost ground to Chinese manufacturers and now has to rebuild its competitiveness rather than wall itself off. Chinese brands have taken more than 10% of the European market, he said, while European vehicle registrations overall have dropped nearly 20% since before the pandemic.
Aymé attributed the Chinese advance to technological leadership in electric vehicles, cheap labor, a domestic market of 34 million annual registrations, and heavy state subsidies. He said China's carmakers also face their own problems at home, including price wars, overcapacity, and brand fragmentation. European manufacturers, he argued, still hold brand heritage, established distribution networks, and a closer read on local market needs. He pointed to a demographic difference as well: the average car buyer in Europe is 55, versus 35 in China.
Aymé said Europe's response should center on industrial transformation, not protectionism alone. He called for simplifying vehicle ranges, mutualizing platforms across models, automating production, and shortening development cycles. He cited the Renault 5 and Citroën ë-C3 as examples already in motion, and pointed to a planned Citroën 2 Chevaux, targeted under 15,000 euros and due in 2028, as a model for the approach.
He also stressed that automakers need to keep control of vehicle architecture and software as cars become "software defined," warning that ceding that ground would leave manufacturers as assemblers dependent on outside tech suppliers.
On batteries, Aymé pointed to four gigafactories now established in northern France — ACC, Verkor, Envision, and Prologium — as a step toward a European battery industry, though he said cost competitiveness there remains unresolved.
Aymé called for regulatory simplification and noted that the European Commission proposed in December easing the 2035 emissions target to a 90% reduction, with 10% flexibility, though he emphasized that change has not been finalized. On tariffs against Chinese EVs, he said they can level the playing field but carry risks of higher prices for consumers and retaliation in trade.
Aymé said the industry's path forward depends on collaboration among manufacturers, suppliers, and research centers, and on looking beyond Europe for growth, naming South America, Africa, the Middle East, and India as markets the industry needs. The European market alone, he said, cannot sustain the investment the industry requires.
Photo by Lenny Kuhne on Unsplash