Tesla, Chinese EV brands compete at German fair

author: FutureCar Staff    

The world's biggest auto show opened in Munich on Monday, with Tesla making a comeback after a 10-year absence to compete with Chinese rivals in the race for electric dominance. Chancellor Olaf Scholz will officially inaugurate the IAA mobility show on Tuesday. However, carmakers took advantage of the press preview on Monday to showcase new models that will soon hit the road.

The focus of this week's fair will be the industry-wide shift towards electric vehicles, with Chinese carmakers making a strong presence as they target the European market. Tesla, owned by Elon Musk, will return to the IAA for the first time since 2013 and is expected to unveil an upgraded version of its mass-market Model 3. This move by Tesla indicates that it is taking the growing competition seriously.

Chinese manufacturers, having already captured a significant share of the Chinese market, are now aiming to win over European customers with more affordable electric cars. Their lower production costs allow them to offer competitive prices, especially when entry-level EVs are still relatively rare. European carmakers, such as Mercedes-Benz and Volkswagen, acknowledge the need to stay competitive in the face of this challenge.

While Chinese groups dominate the exhibitors at the IAA, European carmakers' presence will be more muted. Germany's Volkswagen, BMW, and Mercedes-Benz will be joined by Renault from France, but the Stellantis Group will only be represented by Opel. BMW has already presented its "Neue Klasse" generation of electric cars, which will be manufactured from 2025.

European automakers are heavily investing in the transition to zero-emission driving as the European Union aims to end the sale of polluting combustion engine cars by 2035. However, this transition comes at a challenging time, with supply chain problems, surging energy prices, and a weaker global economy impacting European manufacturers. Car sales in the EU have improved but remain below pre-pandemic levels due to inflation and higher interest rates.

The IAA is expected to attract around 700,000 visitors this week. Climate groups have announced plans to stage protests, including acts of "civil disobedience," to disrupt the fair. Greenpeace activists have already submerged three cars in a small lake outside the convention center, criticizing the car industry for its reliance on large and heavy vehicles that harm the environment.

FutureCar Staff