In Brief
Luc Chatel, president of the Automotive Platform, sounds the alarm about the state of the European automotive industry as the Paris Motor Show approaches. He points to intensified competition from China and the stringency of European regulation as the main causes of the difficulties. Chatel cites the loss of thousands of jobs and foresees heavy consequences for the sector in the short and medium term, especially if no political decision is taken quickly. Despite this tense backdrop, there is a slight uptick with the record of electric vehicle sales in September in France.
The Paris Motor Show kicks off in a few days. It is an opportunity for players in the automotive market to speak up, as Luc Chatel, president of the Automotive Platform, does. He warns about the industry’s future.
Two Reasons Behind Europe’s Market Woes
From October 12 to 18, 2026, Paris will host the Paris Motor Show and the major players of the international automotive market. It’s a chance to revisit the challenges of the years ahead and the difficulties the industry has faced in Europe for some time. Among the drivers, notably, is fierce competition from China. It is in this context that Luc Chatel decided to speak this Thursday, October 8, in the pages of our colleagues at Le Parisien. He paints a grim picture of the French industry. The president of the PFA points to the possible elimination of 75,000 jobs by 2035, which would be added to the 50,000 jobs already lost in the last five years.
According to Luc Chatel, there are two reasons for the industry’s poor shape. On one hand, Chinese automakers, and on the other, European regulation that is far too stringent. “The Chinese today account for 10% of the market; it will be 20% in three to five years. That’s roughly thirty factories fewer in Europe,” Chatel says.
A Pivotal Year in the Presidential Calendar
The other factor behind this grim tally, according to Luc Chatel, is the regulations imposed by Europe. In addition, there is the push to ban new internal-combustion engines by 2035. The president of the PFA explains: “These European measures are devastating. Car prices have risen, middle-class buyers have been pushed out of the new-car market, and, in the end, people keep their cars longer. Consequently, CO2 emissions rise.”
Chatel uses the Paris Motor Show as a platform to alert policymakers and industry players: “If no decision is made in the coming year, I’m not sure there will still be a European automotive industry in ten years. Clearly, survival is at stake.”
Time will tell whether anyone will heed this warning in a pivotal presidential year for France. The government, meanwhile, is drafting its 2027 budget with a directive: find money.
The only bright spot: September was a record month for electric-vehicle sales in France. A trend helped by the Middle East conflict and rising fuel prices.
Comparison Table
| Indicator | Value or Trend |
|---|---|
| Jobs eliminated (last 5 years) | 50,000 |
| Jobs at risk of being eliminated by 2035 | 75,000 |
| Market share of Chinese manufacturers today | 10% |
| Estimated market share in 3–5 years | 20% |
| European plants under threat | ≈30 |
Key Takeaways
- Luc Chatel warns about the enduring crisis facing the European automotive industry.
- Chinese competition and European regulation are seen as the two main sources of fragility.
- Up to 75,000 more jobs could be cut by 2035, after 50,000 losses in five years.
- The market share of Chinese manufacturers could double in Europe within five years.
- Rising prices for new cars are excluding middle-class buyers and slowing vehicle turnover.
- September in France stood out with a record in electric-vehicle sales.
FAQ
Why is Luc Chatel warning about the European automotive industry?
He highlights Chinese competition and the stringency of European regulations as the drivers of the sector’s current crisis.
What are the consequences of European measures according to Luc Chatel?
He argues that they push up prices, exclude the middle class from the new-car market, and contribute to higher CO2 emissions.
How many jobs are at risk in Europe’s automotive sector?
According to Luc Chatel, 75,000 additional jobs could disappear by 2035, on top of the 50,000 lost in five years.
What is the current and future market share of Chinese manufacturers?
Chinese players currently hold 10% of the European auto market, with a projection of 20% in three to five years.
Is there a positive note for the French auto industry?
Yes, September saw a record for electric-vehicle sales in France.
