Challenge to bring down European EV manufacturing costs
Lower costs to close price gap with China EVs
China EV sales account for 8 of European total through July
Renault39;s R5 EV to be 2530 cheaper than ScenicMegane

MUNICH, Sept 4 Reuters Europe39;s carmakers have a fight on their hands to produce lowercost electric vehicles EVs and erase China39;s lead in developing cheaper, more consumerfriendly models, executives said at Munich39;s IAA mobility show.

We have to close the gap on costs with some Chinese players that started on EVs a generation earlier, Renault CEO Luca de Meo told Reuters at the car show, adding when manufacturing costs decline, prices will also go down.

De Meo said as part of the French carmaker39;s drive toward price parity with the Chinese, its R5 EV due out next year will be 25 to 30 cheaper than its electric Scenic and Megane models.

Chinese EV makers, including BYD, Nio and Xpeng are all targeting Europe39;s EV market, where sales soared nearly 55 to about 820,000 vehicles in the first seven months of 2023, making up about 13 of all car sales.

Xpeng plans to expand into more European markets in 2024, and Zhejiang Leapmotor Technology announced five models for overseas markets, including Europe, over the next two years.

According to auto consultancy Inovev, 8 of new EVs sold in Europe so far this year were made by Chinese brands, up from 6 last year and 4 in 2021.

About 41 of exhibitors at this year39;s Munich event are headquartered…