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The Peugeot CitroÃ«n Group, headquartered in France, and Renault Group made every effort to show their style at the Paris Motor Show. The large size of the booth, the gorgeous decoration, and the number of show cars are all breathtaking.
European car market is struggling
Although the French brand cars shined at the Paris Motor Show, for the prospects of the French car market, PSA Peugeot CitroÃ«n CEO and Renault Nissan Alliance CEO Ghosnell Carlos are not optimistic that it will take three to four years to recover. .
September 27 was the first day of the Paris Motor Show Media Day. On the same day, Mr. Walan told the Chinese media at the auto show site that during the past five years, the European automobile market had dropped by 25%, from 18 million in 2007 to 14 million in 2012, including light commercial vehicles. This shows that there is at least 25% excess capacity in Europe. He believes that in the next three years, the European market will not have too obvious improvement. There will be a recovery in the future, but it will not be as obvious as the recovery of the US market.
Mr. Walan admits that PSA Peugeot CitroÃ«n Group has encountered some difficulties in the financial situation due to the sharp drop in the European automobile market including France. In order to change this situation, the Group adopted a series of measures such as closing the Onai Plant and reducing the number of employees in the Rennes Plant. He believes that in the process of restoring the supply and demand balance in the European market, there will be other factories shut down.
Renault Nissan CEO Ghoen Carlos also said in an interview that Renaultâ€™s layoffs in France are unavoidable if Franceâ€™s auto market continues to fall sharply. He said that each company is closely linked with its native country. I do not know which company survives and grows on the premise that the market base is not competitive. A company needs a natural foundation, and Renaultâ€™s natural foundation is France. Carlos believes that the European automobile market may take 3 to 5 years to return to the level before the European debt crisis. We are not yet sure whether the market has bottomed out. We are currently in a predicament and may continue for a long time.
Continue to be optimistic about the Chinese market
In the continuing downturn of the European auto market, European car manufacturers such as the French Peugeot CitroÃ«n Group, Renault-Nissan Alliance, the German Volkswagen Group, and the Italian Fiat Group have all spotted emerging markets, especially the Chinese market. The 22 new models announced at the Paris Motor Show will have 17 models introduced into the Chinese market.
A Chinese reporter asked Mr. Walan. Under the circumstance that the Peugeot Citroen Group is under tight financial conditions, can it honor its commitment to China? Valan replied that although the growth rate of the Chinese auto market has slowed, it is still the most dynamic market in the world. The Chinese market holds a pivotal position in the Group's strategy. We must further promote the Group's globalization and high-end product strategy so that China's business volume can reach a higher level. Our investment and expansion in China are unwavering and there will be no change. Through the efforts of two joint venture companies in China, we will reach 8% of the Chinese market share. Although this process will take some time, our determination to become an active participant in the Chinese market is very clear.
Valan said that our two brands, Peugeot and Citroen, are very dynamic at the Paris Motor Show. You have seen some products directly related to China, such as Peugeot 2008 SUV, Peugeot 301, Citroen C4L, etc. These new cars will soon be put into production in China. In addition, Citroen also has DS luxury car series, we have already begun to sell imported DS5, DS4, DS3 in China. We will implement the localization of the DS5 joint venture in Shenzhen as soon as possible, and we expect to start production in the second half of 2013.
Walan said that the Peugeot 3008, Peugeot 508, Peugeot 508RXH, DS5 and other models exhibited at the auto show are equipped with diesel hybrid power. Our goal is to introduce this technology into China as a gasoline hybrid.
New energy vehicles have become the focus of attention
The theme of this Paris Motor Show is "Future, From now". Like the Paris Motor Show two years ago, hybrid and electric cars are still the focus of attention.
The Paris Motor Show has set up a special exhibition hall for new energy vehicles, covering an area of â€‹â€‹11,000 square meters. The exhibition hall has set up a test driveway for hybrid and electric vehicles, and has set up booths for charging equipment for new energy vehicles. Renault, Nissan, GM, Ford, BMW, Toyota, Mitsubishi and other brands all launched new hybrid models developed in Paris.
Some analysts believe that adapting to the new EU environmental protection standards will be the focus and major challenge for European automakers' future R&D. Hybrid power and electric power will remain an important development direction. By 2018, the proportion of hybrid vehicles in global production will increase from 2.7% in 2012 to 4%; the output of electric vehicles will be 10 times that of 2011, but the proportion of global automobile production is still only 1%.
Analysts believe that hybrid power will grow rapidly in the short term, but electric vehicles are more focused on long-term growth. The plug-in hybrid market has a promising future. The global automotive industry will focus on popularizing these two technologies and significantly reduce R&D and production costs. This is probably one of the inspirations that the Paris Motor Show brought us.
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