Tariffs imposed on Chinese car makers selling electric cars in Europe threaten to create a “lose-lose” trade war, Mercedes-Benz CEO Ola Källenius has told Autocar. China has now confirmed it is investigating raising tariffs on large-capacity combustion cars imported from the EU in response – something that would directly harm Mercedes.

By Nick Carey PARIS (Reuters) - Chinese and European automakers went head-to-head at the Paris car show on Monday, with tensions running high as the EU gears up to impose hefty import tariffs on Chinese-made electric vehicles and the industry struggles with weak demand.

Attending the Paris show for the first time, the decade-old Chinese EV manufacturer XPeng unveiled a sleek sedan, the P7+. Chief Executive Officer He Xiaopeng said XPeng aims to deliver in Europe from next year. Intended European prices for the P7+ weren't given, but the CEO said they will start at about $29,600.

Auto manufacturers competing to persuade drivers to go electric are rolling out cheaper, more tech-rich models at the Paris Motor Show