This month saw the return of the biennial Paris Motor Show. Historically, national shows are flooded with home brands and the French capital’s event did just that. Despite a significant downsizing compared to years gone by, there was enough on display to give a flavour of the industry’s mid- to long-term strategic direction. 

Renault offered up another nod to its past with the all-new, full-electric Renault 4, based on the same platform as its other BEV small car launched earlier in the year, the Renault 5. Renault’s Mobilize brand also offered new quadricycles in the form of the Duo and Bento. 

Citroen revised the Ami quadricycle with an exterior refresh, as well as updated C3 and C4 models and Peugeot offered a range of ‘e’ variants in both 3008 and 5008 vehicles.  

However, it was the Chinese manufacturers that put their stamp across the halls of Paris Porte de Versailles. BYD continues its push through Europe and unveiled another SUV in the shape of the Sea Lion. Leapmotor, a recent addition the Stellantis stable in the past year, launched a series of updated EV models and further brands such as Dongfeng Forthing, GAC, Hongqi, Skyworth and Xpeng all displayed cars ready for the European market. 

Elsewhere, according to a statement from staff representatives, Volkswagen is weighing up a proposal to close at least three plants, cut tens of thousands of jobs, and slash pay by 10% for remaining staff. The manufacturer is also seeking to downsize all remaining plants. Weak demand in Chinese and European markets have hit earnings. If announced closure plans go ahead, this would be the first time Volkswagen has shut a factory on home soil in its 87-year history. 

As an example of the issues faced with its home manufacturers, the switch of German consumers to electric cars has stalled sharply after the abolition of the state purchase bonus at the end of 2023. From July to September 2024, only 3.9% of private individuals who previously had a vehicle with a combustion engine switched to a purely electric drive. Since the beginning of the year, EV share has been only 3.6% on average. The report from insurance research firm HUK-COBURG, suggests the level has fallen by around 40% compared to the last quarter of 2023, a rapid and significant trend reversal. 

Of around 4,200 representative German citizens surveyed, almost half (47%) say that they find pure electric cars "less good" or "not good at all". Plus, 29% only want to buy a purely electric car when only such cars are allowed to be registered by law. 

Vehicle registrations in Italy for Q1-Q3 rose by more than 2% versus the same period in 2023, but were still 18% down on 2019 levels. However, incentives (mainly on BEV and plug-in hybrids) did not help as expected. Combustion petrol and non plug-in hybrids had a total market share of 29.7% and 39.4% respectively, LPG and natural gas 9.5%, diesel 14.1%., with plug-in hybrids and BEV at 3.3% and 4%. 

The ongoing conflict in Israel has impacted car sales in the region. The uncertainty and instability caused by the war has led to decreased consumer confidence, resulting in a noticeable, though relatively small, decline in vehicle purchases (a 6% decline – approximately 232,000 vehicles YTD September 2024 compared to approximately 248,000 vehicles YTD September 2023). Many potential buyers are postponing their decisions to invest in new cars, preferring to wait for a more stable economic and political environment. Additionally, supply chain disruptions and logistical challenges have made it difficult for car dealerships to maintain their inventory levels, further complicating sales efforts. Despite these challenges, EV sales have seen an increase (32% increase compared to same period last year), most likely driven by lack of sufficient public transportation, combined with some incentives for sustainable transportation and the growing supply of new EV (mostly Chinese) makes in the market.