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European automotive industry in ‘very worrying’ situation, lobby chief warns

Consumer hesitancy over emissions targets combines with Chinese imports to threaten Europe’s car market.

Luc Chatel, président de la Plateforme automobile (PFA), qui représente constructeurs et grands équipementiers automobiles français, ici à la Porte de Versailles à Paris le 14 octobre 2024.

Overview

  • Luc Chatel of the Plateforme Automobile describes the sector as “not eternal” and in a “very worrying” state under current pressures.
  • He warns that low-cost, high-quality Chinese vehicles are encroaching on European manufacturers’ market share.
  • Sales of new cars in France fell 12% in May, marking a fifth consecutive monthly decline.
  • Consumers are delaying purchases because of uncertainty over emissions regulations and the transition to electric models.
  • An EU review of the 2035 ban on new internal combustion engine sales is scheduled for late 2025 and 2026, with some MEPs calling for more flexible targets.