IAA

Tour of the IAA Mobility 2025: China comes, Europe counters

More new e-cars from China than ever before are convincing with their price-performance ratio. German manufacturers seem to be taking up the challenge.

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IAA 2025 Entrance

(Image: Florian Pillau)

14 min. read
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It is immediately obvious that there is more China at this IAA than at any previous trade fair. The trade fair organizer, the German Association of the Automotive Industry (VDA), registered 116 out of 748 exhibitors from China. This is the largest increase from a region at the IAA, which already set a record in 2023 with more than 70 exhibitors. Even in 2025, only German companies will be more strongly represented.

Despite the exciting internationality, the only six occupied exhibition halls feel almost private compared to the record-breaking trade fairs in Frankfurt, which attracted almost one million visitors before the financial crisis in 2007. This is partly due to the apparently successful concept, which this year once again reserves the exhibition grounds for trade visitors and moves the public events to Munich's city center. Nevertheless, if more than 500,000 visitors came, 2025 would be a good year for the IAA.

"Welcome Home": Dense crowds around the exhibits at the cramped Mercedes-Benz stand.

(Image: Florian Pillau)

Chinese cars currently only have a market share of around four percent in Germany, compared to five percent in Europe. However, their number has roughly doubled compared to the previous year. Some market observers cite a superior price-performance ratio as the main reason. Conversely, the fact that China is a hope for German manufacturers can be seen from the sales figures of the major brands. They have been selling more there than in any other market for years, albeit mainly premium cars and now under increasing domestic competitive pressure. The fantastic profits of previous years are history.

Meanwhile, numerous collaborations have emerged at supplier and technology level, particularly for traction batteries for electric cars. For example, CATL is building a battery factory in Debrecen (Hungary), which will supply BMW, Stellantis and VW with an annual capacity of up to 100 GWh from 2025/26. Despite concerns about becoming overly dependent on a country with totalitarian claims to world power, the automotive industries are becoming more intertwined than the isolationist policies of the MAGA crowd in Washington would like to prevent. The only thing they are cutting off from globalization is their own. There is no sign of US innovations at the IAA Mobility 2025 in Munich; US imports are not even helped by duty-free treatment in the EU. The former e-car star Tesla didn't even show up, but probably for completely different reasons. Nobody at Tesla will tell you what they are.

The fact that the two high-profile premieres at the IAA from the traditional brands BMW and Mercedes-Benz are both electric cars and all-wheel drive SUVs is due to their importance for the manufacturers: they have to get their customers excited about e-cars because of the fleet requirements. The easiest way to get them is with these vehicles, which have been so popular for over a quarter of a century. The margin is also somewhat higher this way. As a result, both are competing with fairly directly comparable products in different flavors.

Popular beasts: SUVs have been the fastest growing type of car in Europe for over a quarter of a century. The picture shows the new Mercedes-Benz GLC EQ.

(Image: Florian Pillau)

However, this duel in the premium corner does not change the fact that German electric cars are still too expensive for most buyers, a sticking point in the market. Stellantis has provided impetus for more affordable models with its products and by marketing the affordable T03 subcompact from Chinese manufacturer Leapmotor as well as Hyundai's Inster and the Renault 5. The Chinese Dolphin Surf from BYD also belongs to this group. The brand aims to sell over 50,000 cars in Germany alone in 2026.

Powerful electric cars will soon also be coming from Volkswagen. The picture shows the VW ID.Every1 study

(Image: Florian Pillau)

Entry-level e-cars from Volkswagen

From 2026, the Volkswagen Group wants to get involved with its VW, Skoda and Cupra brands: The “Electric Urban Car Family” with the members Cupra Raval, Skoda Epiq, VW ID. Polo and VW ID. Cross on the shared MEB Small platform is intended to significantly reduce costs (and vehicle size). We expect prices to start at four meters in length and range from 25,000 to just under 40,000 euros. The study for an ID.1 with the working title “Every1” in similar dimensions was also presented at the IAA, but a production model is not expected before 2027.

Well-attended Volkswagen stand with Skoda, Cupra and VW models

(Image: Florian Pillau)

Despite the aforementioned cooperation with CATL, Volkswagen wants to set up its battery production in the longer term and is working on its “Unified Cell” with initial series production from 2026. VW's Head of Technology Schmall told the press that “cell performance” is crucial for the range, charging capacity and performance of the cars. Because this area corresponds to the expertise in previous combustion engine technology, Volkswagen is specifically aiming for long-term independence in this area.

Small electric car with cozy name recourse: VW ID.Polo

Let's stay with the little ones for a moment. Mini doesn't have a new model, but it does have a pretty badass track machine based on the John Cooper Works with a plastic cabin. With the model on display at the BMW stand, you can certainly drain the batteries very quickly – with a significant increase in blood pressure.

Electric John Cooper Works racing machine

(Image: Florian Pillau)

The electric sports car prototype with Panamericana grille in the yellow-orange color of the 1970 C111-II on the Mercedes stand could probably do the same thing, only in large size and with premium aspirations. The four-door Mercedes-AMG GT-XX introduces the AMG electric platform AMG EA (Electric Architecture) and could go head-to-head with the Porsche Taycan electric sports car.

Electric sports car prototype Mercedes-AMG GT-XX

(Image: Florian Pillau)

Alongside the Mokka GSE with 207 kW, Opel is presenting a very fast-looking Corsa GSe Vision Gran Turismo study with 588 kW for the track. However, Opel says that this will not become a drivable project.

Corsa GSe Vision Gran Turismo study with 588 kW – but not roadworthy

(Image: Florian Pillau)

At its stand, project urban 2/3 will be showcasing its well-known range of B2B electric scooters, which allow a wide variety of drive and chassis configurations thanks to their modular design. project urban 2/3 even offers an electric version of the BMW C1 from the 90s as a motorcycle license-free tricycle that does not require a helmet thanks to its “safety cell” and belt. The target groups for the customizable bikes are business and public authorities, which is why there is also a police and ambulance version.

Two-wheeler license-free and modular: Electric scooters from project urban 2/3

(Image: Florian Pillau)

Chinese manufacturer Leapmotor presented the B05, a hatchback electric car that will be available in Europe from the second quarter of 2026. The electric car, which is comparable to an Opel Astra or Peugeot 308, is likely to become more widespread thanks to its good price-performance ratio and extensive service network. Technically, it is likely to be based on the larger B10, which can be ordered with 160 kW and 56.2 or 67.1 kWh for a range of 361 or 434 km from just under 30,000 euros.

European premiere for the Leapmotor B05

(Image: Florian Pillau)

Mercedes has presented its GLC as an electric car for the first time. However, the claim to “purity” in the “sensual purity” of the design is not actually fulfilled. Although it is well known that such a large grille is not necessary for an electric car, it looks like a pasted-on, sprawling façade, as could be seen even on the cramped exhibition stand. Apart from that, the model impresses with electric strengths never seen before from Mercedes. An energy content of 94 kWh net is above average.

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.