(Bloomberg) -- French automotive supplier OPmobility has warned that electric-vehicle manufacturers are in for tough times as customers shun models that remain too expensive.

“Many of our clients are losing market share, or have volumes that are below their expectations,” Chief Executive Officer Laurent Favre said Tuesday on a media call discussing the company’s first-quarter sales.

European carmakers are coming under pressure as elevated borrowing costs, slow economic growth and waning subsidies weigh on EV demand in markets including Germany, Sweden and Italy. Tesla slashed prices in China, the US and Germany over the weekend after disappointing first-quarter sales. Meanwhile, Chinese brands are expanding abroad with models that often are cheaper than their local rivals.

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Discussions between auto suppliers and manufacturers are “very tense,” Favre said. “Some of our customers are cutting the prices of their vehicles because they are too expensive. Many of our customers have production delays.”

Formerly known as Plastic Omnium, OPmobility makes car equipment such as bumpers, front-end modules and lighting. It supplies car manufacturers including Tesla but also makers of vans, trucks, trains and airplanes.

The French company will keep trying to secure higher prices for its products in the current and next quarter to counter elevated energy and labor costs, the CEO said. OPmobility has had some success in price negotiations during the first three months of the year.

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OPmobility aims to double its revenue in the US over the next five years. It recently inaugurated a plant in Austin, Texas and plans to invest in a manufacturing site in Michigan after winning a US hydrogen order. It’s also building new facilities in India and China, Favre said. 

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