Renault leads Europe's EV defence in Geneva as Chinese rivals expand

Renault and China-owned MG launched new electrified cars in Europe at the Geneva car show on Monday as Chinese carmakers seek to take more market share from legacy European rivals.

Europe's car industry is scrambling to cut costs and roll out more affordable, well-reviewed electric vehicles (EVs) to counter the arrival of cheaper Chinese models.

The strong presence of Chinese competitors at the show, which returns this week after a four-year hiatus due to the Covid-19 pandemic, shows “they are interested in our market, in our customers”, Renault CEO Luca de Meo told Reuters.

Speaking to media later, after unveiling Renault's highly-anticipated new electric Renault 5 (R5) E-Tech, he insisted Europe's car industry was “up for the challenge”.

De Meo repeated calls to replicate the success of European aeroplane maker Airbus for the car industry by fostering deeper co-operation between carmakers.

Renault is in early talks with Volkswagen to share its Twingo electric platform with the German company, he said.

De Meo said he was pushing for EU regulation to be more flexible for small cars to help make them more competitive.

In a sign of weakening interest from legacy carmakers for most car shows, there were fewer exhibitors than before Covid-19, with stands in just one hall, rather than in several at the previous show in 2019. US EV pioneer Tesla does not have a stand.

The R5 is central to Renault's efforts to build affordable EVs. Rival Stellantis will roll out its electric Citroën e-C3 this year, which starts at €23,300 (R487,840).

Also on Monday, SAIC's MG brand announced the European launch of its MG3 hybrid, which is already sold in Britain.

According to French auto consultancy Inovev, with sales of 230,000 cars last year MG sold two out of three Chinese-made cars in Europe.

Inovev estimates that, including Russia and Turkey, Chinese carmakers should sell more than one-million vehicles in Europe in 2024.

China's state-owned SAIC also said its EV brand IM Motor would launch its L6 luxury electric SUV in Europe next year. IM Motors is also backed by Alibaba Group investments.

China's BYD, which outsold Tesla globally in the fourth quarter, lost out to Renault's Scenic in the “car of the year” award at the exhibition.

“This is another symbol we are back in the game,” Gilles Le Borgne, Renault's head of engineering, told a media event.

That the BYD Seal electric sedan was in the running for the award shows how far China's carmakers have come in their quest to break into the European market.

Like many other Chinese models, the Seal has earned a five-star Euro NCAP (new car assessment programme) rating, a far cry from the crash test failures in 2006 and 2007 that marred their early attempts to crack Europe's competitive market.