A weak RMB will exacerbate the woes of French automakers Stellantis and Renault, putting further pressure on the EU to impose import quotas.

On 8 October, China’s central bank rejected foreign calls for a stronger yuan, which Deutsche Bank estimates is still 15% undervalued against the euro. Stellantis and Renault are particularly vulnerable to a weak RMB because their affordable small cars compete directly with Chinese models. BYD and Chery have also shifted towards exporting plug-in hybrids to avoid the EU’s higher tariffs on Chinese electric vehicles – facing only the standard 10% import duty. Stellantis has already missed second-quarter profit forecasts amid pricing pressure, while sales at Renault’s Dacia brand fell nearly 9% in the first half. By early 2027, BYD and Chery could sell an additional 126,000 cars annually, worth €2.8 billion, while Stellantis and Renault could lose 88,000 sales worth €1.9 billion. Brussels will increasingly look towards import quotas on Chinese hybrids.