Tensions are running high at the Paris Motor Show. 

The industry is struggling with weak demand as European automakers aim to defend their position in the market.  

The EU is gearing up to impose hefty import tariffs on Chinese-made electric vehicles, as the rival automakers attempt to get a foothold in the competitive market. 

France Correspondent Catherine Field told Mike Hosking that the Chinese Government subsidises their EV industry, so this is the Europeans attempting to even the playing field. 

She says that there are warnings the tariff could result in Chinese companies setting up plants in Europe, which could lead to local manufacturers getting forced out of the business entirely.  

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