Hello and welcome to Business Daily. I'm Theo Leggett.

Today's high-powered program comes to you from the Paris International Motor Show,

where I've been casting an eye over the flashy four-wheelers on the stands

and catching up with industry gossip behind the scenes.

We'll be hearing why Chinese carmakers think they've been getting a bad press.

I think the reason we are competitive is because we have fought toothed and nails

through the most competitive market in the world, which is the Chinese market.

A well-known American name returns to the European market with a very different offering

and how a maker of kids' toys wants to make a big impact with a very small car.

It's a small electric city car with two seats and a range of up to 230 kilometers.

And at the end of the day, it's a perfect way to get around in the city.

Paris, a city renowned for its fine art, even finer architecture and excellent cuisine.

But what you really notice when you get here is the truly appalling traffic.

A melange of cars, vans, buses, lorries and bikes all competing for space along those romantic avenues and boulevards.

All of which makes it a strange place to hold an event dedicated to the car.

But the Paris Motor Show has been going strong since 1898, and the organisers have no intention of stopping now.

There's a party atmosphere, from the brass band playing outside to the garish, brightly lit corporate stands, where sharp-suited executives caught the media in front of their very latest

shiny four-wheeled creations. But behind the

scenes, European carmakers are getting worried. Petrol and diesel power will soon be a thing of the

past thanks to ever stricter emissions laws brought in by European governments. Nearly all new models

are whisperingly quiet electric machines and developing them has cost manufacturers billions.

This is what's causing the problem, because the investment is enormous

...