Competing with China, European automakers revive old models

European carmakers are trying to compete with the rise of Chinese brands by reviving nostalgic models and offering cheaper electric versions.

European automakers are trying to compete against the growth of Chinese brands by reviving iconic models and launching cheaper electric versions.

According to the Mehr reporter, European car manufacturers have put the revival of old models and the supply of cheaper electric versions on the agenda to deal with the increasing competition of Chinese brands; A strategy that is supposed to encourage more customers to buy European electric cars by relying on the history of brands, familiar design and reducing production costs.

According to the Financial Times, Stlantis plans to launch the memorable Citroen 2CV model in the form of an all-electric car with a target price of around 15,000 euros by 2028.

Volkswagen has also introduced the ID.Polo electric car with a price of around 25,000 euros; A model that is inspired by the design and identity of one of the old and best-selling cars of this company.

The return of old models is followed in a situation where European car manufacturers are facing pressure from the entry of Chinese brands, high production costs and weak demand in some markets. Companies such as BYD, Changan and Chery are aiming for a larger market share in this region by offering competitive electric vehicles and expanding their sales network in Europe.

In the meantime, the history of European brands has become one of the tools of competition. Renault has already attracted the attention of the market with electric versions of the old R5 and Twingo models, and now other automakers are also trying to use the combination of familiar design and new technology to differentiate their products.

However, the competitive advantage of Chinese automakers is not limited to design and equipment. The estimate of AlixPartners consulting company shows that the average price of a Chinese electric car produced in China is around 20,000 dollars; While the similar European model costs about 31 thousand dollars. The lower cost of batteries and raw materials is mentioned as one of the reasons for this difference.

The price gap has made it more difficult for European manufacturers to compete. According to estimates cited by the Financial Times, the share of Chinese brands in car sales in Europe may increase from around 12% currently to 16% in 2030.

On the other hand, some European factories are facing empty capacity, and the automotive industry in this continent is faced with cost reduction, closure of some production lines and staff reduction.

Stellantis hopes to build the new Citroen model on an all-electric platform and with an emphasis on manufacturing in Europe will help reduce costs. However, the success of this strategy will depend on the companies' ability to supply cars with a competitive price, maintain quality and respond to the needs of consumers.

Reviving older models can help European automakers with marketing and brand differentiation, but it alone will not eliminate the manufacturing cost gap with Chinese rivals. The future competitiveness of this industry will depend on a combination of price, battery technology, speed of product development and mass production capability.