Peugeot’s CEO: “We won’t win the price war with the Chinese, but we will win the battle.”
10/16/2026 5:00 PM
Updated to
10/16/2026 5:30 PM
Alain Favey, Peugeot’s CEO, has been one of the most sought-after figures at this year’s Paris Motor Show, as Peugeot unveiled two of the most talked-about prototypes: the stunning Peugeot RCZ Vision and the e-T16, its high-powered counterpart with 816 horsepower, aimed at competing with the Renault 5 Turbo 3E.
At this exhibition, where OMODA showcased its cheapest new SUV and Zeekr set a price in Spain for its best Chinese SUV, Peugeot’s CEO spoke clearly about the arrival of Chinese cars in Europe… and hinted in an interview with Autocar at how the European industry will respond: “We won’t win a price war against Chinese manufacturers, we know that; but we will win the battle.”
A war we “can’t win,” but a battle Peugeot can
Peugeot’s CEO wasn’t shy about discussing how Chinese manufacturers’ aggressive tactics have transformed the European auto market, stating clearly that at Peugeot “we won’t lower prices, but rather raise them and offer more value along with better design for the future.”
Alain Favey knows that this strategy will eliminate Peugeot from the war with Chinese manufacturers focused on low prices, but he didn’t hesitate to explain that “it’s a way to respond to competitors like the Chinese, who base much of their strategy on prices. We know we won’t win the price war. That’s obvious for many reasons. They’re fully aware that this isn’t a war we can win.”
However, Peugeot’s CEO is by no means a pessimist. On the other hand, he is clear that “in reality, we are winning the commercial battle [with the Chinese].”
How does Peugeot plan to win the battle against Chinese manufacturers?
Favey revealed that “to win the commercial battle, we need clarity in design, technology, and innovation: that’s where we feel at home, with sports cars.”
And this strategy for fighting against the Chinese can be extended to the entire European industry. Not coincidentally, Peugeot’s CEO cites as an argument that “we have a heritage we must reference to remind people: if they want this heritage to continue for the next 200 years, perhaps they should buy a car that contributes to this heritage here in Europe, one that helps the European economy and jobs.”
A message to European buyers, in which Peugeot’s CEO insists, “This is the message we must convey. If we want this legacy to endure in 20 years, perhaps we should consider, when making a purchase, what brand we are acquiring and whether it contributes to the European economy.”