Chinese car makers challenge European industry at Munich show

author: FutureCar Staff    

Chinese manufacturers and Elon Musk's Tesla are set to make a strong presence at the upcoming IAA auto show in Germany. This comes as German car makers face challenges in the e-mobility race and struggle with increased energy costs due to the Russian invasion of Ukraine. While sales in the European Union have improved, they remain below pre-coronavirus levels due to inflation and higher interest rates. Chinese car makers are offering vehicles at lower prices, posing stiff competition to European manufacturers and threatening to dominate the electric vehicle market.

Industry analyst Ferdinand Dudenhoeffer sees the IAA as a turning point for the industry, with Chinese groups starting their assault on Europe. Around 41 percent of exhibitors at the fair are from China, including brands like BYD and Leap-motor. In contrast, participation from other European makers is muted. Tesla's appearance at the IAA marks a shift as the brand begins to engage in marketing activities.

The IAA is expected to attract around 700,000 visitors, with a focus on the transition from combustion engines to electric vehicles and the climate crisis. Climate groups have vowed to protest at the fair, with some planning civil disobedience to disrupt the event. The automotive industry has faced criticism for its growth imperative and the impact on the environment. The IAA moved from Frankfurt to Munich in 2021 to rebrand itself as a festival for all forms of mobility and attract more attention from the public.

Traditional motor shows have struggled to attract manufacturers, leading to dwindling visitor numbers and the absence of big European names. The Paris Motor Show, for example, saw reduced attendance and the absence of companies like Volkswagen, BMW, and Ferrari. In contrast, Chinese car makers like BYD showed up at the event.

FutureCar Staff