Macron emphasizes European preference in auto industry

French President Emmanuel Macron has stressed the need for Europe to prioritize its own vehicles in the face of global competition, especially from China, ahead of the World Auto Show. The president is hosting around sixty European industry actors at a dinner at the Élysée Palace on Sunday, October 11, where he will outline his vision for the European automobile sector.

Chinese manufacturers excluded from event

The Élysée Palace confirmed that no Chinese manufacturers will be present at the event. Only those industry actors "who have invested in Europe for a long time" are invited, according to the palace. Macron aims to position himself as a defender of European carmakers against low-cost Asian competitors.

China's vehicle exports and EU response

China produces and exports about 55 million vehicles annually, while the European market has a capacity of 12 million. China has agreed to slow down its exports of hybrid vehicles to the EU, potentially preventing millions of these vehicles from arriving in Europe. This could lead to quota measures on hybrids, following existing surtaxes on electric vehicles.

Electrification driving growth in France

Electrification is highlighted as a key driver for market recovery and production in France. The share of electric vehicles in France has grown from 1% in 2017 to 40% in September 2023. "Made in France" is gaining strength in the batteries of these vehicles, now representing 26% of new car registrations.

Europe seeks to consolidate achievements

The challenge now is to consolidate these achievements at the European level. Europe must support its own production in the face of intensified international competition, according to the Élysée. Discussions are ongoing between Paris and Berlin about reinforcing European preference and industry support.

EU pushes for European-made goods

The European Commission proposed in March that companies in strategic sectors, such as the automotive industry, must source goods "Made in Europe" to continue receiving public funds. This measure has long been demanded by France. Brussels wants to include goods from certain trade partners of the EU, a principle supported by Germany and several other countries under the "Made with Europe" concept.

Macron visits key industry sites

Macron will visit the stands of Valeo, Renault, Stellantis, and the Factory of Innovation on Monday. He will then preside over a round table focused on autonomous vehicles, highlighting the importance of innovation in the sector.