Citroen's CEO is predicting a fierce battle with Chinese manufacturers after unveiling this week what it calls the first affordable European-made electric car.

The French firm unveiled its new e-C33 EV on Tuesday, a five-seater, five-door hatchback with a 199-mile range and a base price of $24,629. That figure is roughly half the price of most other electric cars on the market in Europe.

Citroen hopes the new price point will entice European drivers to part ways with their petrol and diesel cars and make the switch to EVs. But Citroen CEO Thierry Koskas says his company faces stiff competition from Chinese car manufacturers such as BYD, Xpeng and Nio that have been successful in developing cheaper EVs.

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"It's a reality already," Koskas tells CGTN Europe. "Chinese manufacturers are entering the market and they are progressing every month. This is a reality because they make good cars and affordable cars. 

"The challenge for European manufacturers is to fight and produce affordable and efficient cars. But this car is very much a game changer because for the first time we have a car with production costs that are very much competitive compared to the Chinese manufacturer. That's really, really a game changer."

The sizeable costs involved in manufacturing electric vehicles have so far hampered the ability of European car manufacturers to compete with the affordability of Chinese EVs. Costly battery technology and a limited supply of expensive materials and parts specific to EVs have contributed to expensive price tags.

But Koskas says Citroen has successfully slashed costs and manufacturing time after embarking on a root and branch review of how it produces EVs. The result is a much cheaper car and a production process that is specific to EVs. 

"We've optimized everything in the car," says Koskas. "We have a brand new platform that is EV native, which means that from day one, it has been designed for electric vehicles. We have optimized every single element, reviewed all the components of the car. Production time is also very efficient – 25 percent less than previous electric vehicles.

"Next year we'll have a second version that will cost around $21,000, something even more affordable. So a lot of people who do not think today about going electric vehicle will choose to buy an electric vehicle."

Koskas predicts that Citroen's latest model will be a big hit with drivers. "We expect it to be extremely popular and under high demand, simply because we have survey data which shows people haven't bought cars because it's expensive or complicated to charge. 

With prices falling, the obstacles preventing drivers from swapping their petrol and diesel cars for EVs are gradually being removed. But while the availability of affordable EVs is improving, is the infrastructure in place to ensure drivers can charge and maintain their cars?

The European Union is responsible for more than a quarter of the world's EV production and 20 percent of the bloc's new car sales. In 2021, the continent had an estimated 375,000 charging stations. But a report by the European Automobile Manufacturers' Association suggests that the EU will need at least 3.4 million operational public charging points by 2030.

So, could that be a barrier to Citroen's ambitions of rolling out their cars at scale? "We're adding thousands and thousands of charging points every month," says Koskas. "With my electric car, I've found there are very few petrol stations that don't have EV charging points.

"I think that very soon there will be more than enough charging points for everyone. And let's not forget, in most instances you will only need to charge your car at home because the range on electric cars is increasing all the time."

As the EU gears up for its transition to EVs, Citroen is leading the race to win the hearts and wallets of consumers.

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