Europe's car industry fought back against rising Chinese competition at the Paris car show on Monday with a wave of new model launches and fresh support from Brussels, even as Chinese automakers expanded their push into the region.The show opened days after the European Union announced a deal with China to curb imports of Chinese hybrid vehicles into the bloc, with a cap of 350,000 a year, according to a European Commission official. While details of the arrangement have yet to be finalised, it was welcomed by European manufacturers.The flood of Chinese hybrid imports into the EU is "not sustainable" for Europe, Renault CEO Francois Provost said, describing the agreement as "better than a trade war".China's Leapmotor International said it needed to understand how the cap would work in practice, but that it was an "interesting alternative to tariffs".Around 20 Chinese brands, including BYD and Chery, are attending the show, double their presence in 2024 as they seek growth overseas amid intense competition and weaker demand at home.Chinese brands have gained share rapidly in Europe over the last three years, while Chinese exports of hybrids to the EU's 27-member states tripled to $7.5bn in the first half of this year, according to Chinese customs.The EU-China deal could hit BYD, Chery and state-owned SAIC's MG brand hardest as between them they accounted for 90% of Chinese brand hybrid sales in the EU in the first eight months of 2026, Jefferies analysts said on Sunday.Volkswagen CEO Oliver Blume welcomed progress in EU-China talks, saying on Sunday that companies selling cars in Europe should compete under comparable conditions and create jobs and value in the region.The German carmaker said on Monday its deliveries fell 14.3% in the third quarter, the steepest quarterly drop in four years, dragged down by a further decline in demand in its top market, China. Deliveries also fell in North America and Western Europe.As part of its efforts to regain market share in Europe, Stellantis is launching six new models across its European brands at the show and unveiling nine concept cars, marking a significant expansion of its presence at the show.On Sunday evening, Stellantis CEO Antonio Filosa hailed "the reinvention of a European icon" as he unveiled an affordable retro electric version of Citroen's 2CV.The company is also adopting faster Chinese-style development cycles, Chief Technology Officer Ned Curic said, outlining plans to build small EVs in Italy using a platform being developed with Leapmotor.Renault's head of growth, Fabrice Cambolive, said the carmaker could increase EV production in France by at least 50% over the next 12 months.Like other Western motor shows, Paris had been in decline until Chinese automakers began turning up in force four years ago.Alongside BYD and Chery, this year's show features newer Chinese entrants including Aito, while state-owned Changan is launching its Nevo and Avatr brands in Europe.Chinese automakers also used the event to outline further European expansion plans. Changan President Zhao Fei said the company was in talks with manufacturers about producing vehicles in Europe and hoped to build its first European-made car in early 2027.BYD is studying the possibility of building a factory in France, Executive Vice President Stella Li told broadcaster BFM TV on Monday.The EU imposed tariffs on Chinese-made fully electric vehicles in October 2024. Brussels is also working on "Made in Europe" rules requiring minimum local content levels for EVs to access large parts of the bloc's market.Agreement between France and Germany on the provisions is "imminent", French President Emmanuel Macron said at the show.Chinese automakers have sought European production bases ahead of the proposed rules, often in partnership with established manufacturers.In July, China's Geely Auto said it would produce electric SUVs at a Ford Motor factory in Spain. On Sunday, Geely Auto CEO Alex Nan highlighted the company's growing partnership with Renault and its commitment to Europe.Separately, India's Tata Motors Passenger Vehicles and Stellantis said on Monday they had expanded their partnership to include technology and product development, with plans to build vehicles in India for more than 50 global markets.Car sales in China, the world's largest auto market, fell 20% in the first half of 2026, increasing pressure on manufacturers to expand overseas.As the US market is effectively closed to China's auto industry, Europe has become its top export priority."If they drop exports in Europe they die because they can't make the money elsewhere," said Francois Roudier, secretary general of the International Organisation of Motor Vehicle Manufacturers.