Scenarios

European industry responds to Chinese challenge

Groups from the old continent are launching numerous proposals in order to renew their offer and better cover strategic market areas

by Mario Cianflone

La sesta generazione di Renault Clio, bestseller in Europa e in Italia, che rilancia la sfida nel segmento B trascurato da molte altre case

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The year 2025 is coming to an end, and from an automotive point of view it has been a difficult year, but probably the worst, from an industrial point of view, is yet to come amidst resounding reversals with scratching on the all-in advance for electrics (most recent and resounding being the case of Porsche), the definitive realisation that European diktats on the ban on thermals in 2035 are a disaster and that Chinese competition is strong, with high quality powertrain products (including hybrids and super hybrids suitable for fleets). And all this exactly ten years after the deflagration of the dieselgate scandal, which ignited the epochal change in the automotive industry. After that, nothing has been the same.

The automotive industry faces a phase of great turbulence and the continental European industry is trying to remedy and react to a series of crises within crises, which, since the pandemic and the chip shortage, have continued with the transition not taking off and sales struggling.

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In recent weeks in Munich, but also in the pre- and post-show announcements, a new chapter in the clash between the European and Chinese automotive industries has been played out.

On the one hand, in fact, we have seen the surge of traditional manufacturers from the old continent, with numerous interesting innovations from the Volkswagen group, BMW, Mercedes, to stay in German territory, and Renault, which with the debut of the sixth generation of the Clio wanted to make it clear that the B segment, the compact segment, remains strategic and that with hybrid engines it is also possible to make affordable cars with low emissions.

Clio sixth series celebrates 35 years of a car that has made European automotive history. Increased in size, now 4.11 metres long, it displays a style that winks at compact coupes, enhanced by a new diamond-shaped light signature and wheels up to 18". Inside, the dashboard introduces recycled materials and a dual display up to 10.1 inches housing the OpenR Link system with integrated Google. Engines include the 160 hp E-Tech Full Hybrid and there is also a LPG version with automatic transmission.

If the Clio is one of the most interesting novelties of the coming months, there are also the Mercedes GLC EQ to watch out for, a new electric-only generation of a bestseller, and the new course of BMW, which with the iX3 begins the adventure of the Neue Klasse era, while to stay on the electric side, Volkswagen's new strategy aimed at relaunching the brand's classic names is evident. One example is the ID.Cross concept that anticipates the future electric T-Cross.

In short, European manufacturers are moving, but in front, even on the electric side, they have Chinese competitors such as the Xpeng Next P7: a concentrate of technology (and AI software). The styling is original, the construction level impressive, and the declared performance is of a level that will worry all competitors in China and Europe: 593 hp, 92.2 kWh battery to ensure an autonomy of no less than 600 km. But on this front, especially on the fleet side, there is the unknown of the residual value of Chinese cars influenced by brands without a blazon. However, even the Chinese giants are playing on residual value. An example? Gelly, Volvo's Chinese parent company, which is coming to Italy with models with a six-year warranty to keep residual value high and win over fleets.

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