As you probably know if you follow automotive news closely, from the beginning of 2024 in France the environmental bonus is indexed to the environmental point.

In other words, the further a car is manufactured (for example, in China), the less it will be able to claim an environmental bonus. In addition to the Mazda MX-30, all cars made outside of Europe are currently excluded.

German manufacturers advocate free competition

At the European level, protectionist measures should also soon appear, as “retaliation”, in particular to those taken by China and the United States, in particular, with an increase in customs duties, which may occur within several months. Even if these measures are aimed at supporting European manufacturers, some do not take these measures very kindly, especially if we know their dependence on the Asian market for the supply of, among other things, batteries for their cars.
Currently, the European Commission continues to investigate subsidies provided to Chinese manufacturers. This investigation is not required by the manufacturers, at least some, for example Mercedes or the Volkswagen group, two producers who favor free competition between countries and producers.
The problem is that manufacturers operating in China cannot afford a trade war between the continents. Volkswagen, which continues to face difficulties in China, has partnered with XPeng to develop electric models, Audi with SAIC, and 20% of Mercedes is owned by the Geely group (Volvo, Lotus, Polestar, etc.) and BAIC. . While the Volkswagen Group is struggling in China, the country is still Mercedes’ biggest global market.

Will French producers benefit from these protectionist measures?

The statements by representatives of Mercedes and Volkswagen also caused some disagreement with ACEA (Association of European Automobile Manufacturers), and in particular Luca de Meo, Renault boss and president of the association, acknowledged the effect. in favor of protecting the industrialists of the Old Continent. However, Renault and even Stellantis cooperate with Chinese manufacturers, in this case Geely for Renault and Leapmotor for Stellantis.
But French manufacturers stand to gain more than their German counterparts in the face of increased customs duties and competition from cheap Chinese electric cars that could undercut the likes of the Renault 5 E-Tech and other Citroën-C3s.

If European protectionist measures see the light of day, it should, on the other hand, encourage Chinese brands to move some of their production to Europe, as in the case of BYD, which will open a plant in Hungary, MG, which should also have its own plant by the end of 2025, then as Leapmotor will be able to see its models assembled at the Stellantis factory in Mirafiore.