From rectangular steering wheels to swimming cars, here's what's going on at the Paris auto show

PARIS, France — Auto giants have descended on the Paris Motor Show to showcase their latest concepts and production models, jostling to capture the public's attention with eye-catching designs and futuristic technologies.

The biennial trade show, which opened on Monday and runs through to Sunday, comes as European carmakers contend with some hard truths on the road to full electrification.

Manufacturers such as Volkswagen, BMW and Stellantis have all issued profit warnings in recent weeks, citing challenges including faltering demand for electric vehicles (EVs) and intense competition from abroad.

The pressure on European automakers is poised to ratchet up even further next year when emissions-reduction targets come into force.

It is hoped that the Paris Motor Show can prove to be something of a turning point for Europe's auto industry, with many rolling out affordable EVs in an attempt to keep up with their Chinese competitors.

French car giant Peugeot was one of those creating some buzz. The automaker welcomed visitors — including French President Emmanuel Macron — to take a close look at its Hypersquare steering wheel.

Peugeot said the steering wheel's rectangular shape, which resembles a video game controller, will be in production from 2026. It hopes the innovative design will be particularly appealing to a younger audience.

The Hypersquare was featured in Peugeot's Inception concept car.

Elsewhere, Chinese electric vehicle maker BYD unveiled its Yangwang U8 model to a French audience for the first time.

The plug-in hybrid SUV is capable of "swimming" for up to 30 minutes, parking sideways and making a complete turn on the spot, a BYD spokesperson told CNBC.

The Yangwang U8 model can undertake these maneuvers thanks to four electric motors, one in each wheel.

BYD said the vehicle's ability to float "is not just a gadget," adding that the feature could prove to be lifesaving in the event of flooding or an accident involving water.

The vehicle also comes with a built-in drone mounted on its roof, which BYD said could be deployed to show the driver what to expect further down the road.

The Yangwang U8 was first introduced last year in Guangzhou and is currently only sold in China.

French carmaker Renault showcased its retro-inspired R4, a small electric SUV based on the iconic Renault 4. The compact EV is designed to rival budget models from Chinese manufacturers.

Germany's crisis-stricken Volkswagen held the premiere for its seven-seater Tayron SUV, a range that comes as a mild hybrid or a plug-in hybrid. Volkswagen said the Tayron is the firm's second-largest SUV in Europe, behind the Touareg, and is available to order from 45,475 euros ($49,525).

Stellantis unveiled two new models at the Paris Motor Show. The company, which owns household names including Jeep, Dodge, Fiat and Chrysler, announced the new compact Citroën C4 and C4X. Both models have hybrid, electric and pure combustion-engine versions.

China's Xpeng on Monday launched the P7+ at the Paris Motor Show, an all-electric model that it hopes will cement its place in an era of autonomous driving and artificial intelligence-powered mobility.

The P7+ is powered by Xpeng's so-called "Turing chip," named after British scientist and mathematician Alan Turing. The chip is designed to operate in a number of the firm's AI-driven vehicles, ranging from robots to flying cars, one of which was on display above the Xpeng stage.