At this Munich Auto Show, the "roofs" of European cars are really on fire.
“It's Europe vs China.”
Before the opening of the Munich Auto Show (IAA MOBILITY 2025) in 2025, the front - page news of Reuters had already set the tone for this European automotive event in advance.
Yes, looking back, this is the most "fiery" German auto show. China and Europe, the East and the West, two camps and two forces, have never had such a fierce collision on German soil.
On the European side, from enterprises to the media, all are eager to prove to the world that they can still move forward at full speed and remain the leaders in the automotive industry. One week before the auto show, BMW and Mercedes - Benz couldn't wait any longer. High - profile new cars such as the BMW iX3 and the Mercedes - Benz GLC EV were exposed in advance. The BBA staked their "all" and "declared war" on their opponents from the East.
On the Chinese side, with the most determined strategy and the most resolute product offensive, it declared to the European market the determination to "take root here and not leave". Statistics show that the number of Chinese participating enterprises has increased from more than 70 in 2023 to 103, covering areas such as complete vehicles, three - electric systems, and automotive intelligent software and hardware.
"Chinese enterprises are more active than ever!"
Whether it is research institutions or industry groups represented by the German Association of the Automotive Industry, all interviews and speeches of executives and experts seem to be inseparable from the word "China". You know, among the 29 participating automobile manufacturers this year, as many as 14 are from China, while only 10 are from the European camp.
At 8th September Beijing time, the curtain of the Munich Auto Show finally opened. With the theme of "IT'S ALL ABOUT MOBILITY", Chinese automobiles officially penetrated into the heart of Europe. Focusing on the three core directions of mobility, sustainable development, and technological innovation, a smoke - free competition between China and Europe officially kicked off in the hometown of BMW.
BBA Shows Its Sword in Advance
Since the first auto show was held in Berlin, Germany in 1897, the IAA has always been the absolute focus on the European continent. Until 1939, after World War II, the auto show was moved to Frankfurt. During the decades - long golden age of traditional fuel vehicles, the IAA was regarded as the vane of the global auto market and technology. The Frankfurt Auto Show also advanced smoothly amidst flowers and applause, being held every two years until it ended in 2019.
In 2021, Munich in Bavaria officially took over the hosting of the auto show from Frankfurt. The German auto show officially entered the "Munich era". The full name of the exhibition was changed from IAA to IAA MOBILITY. Its connotation was extended, covering more fields and emphasizing new concepts such as mobility.
What Bavaria didn't expect was that the pressure on the Munich Auto Show would be higher than that of the former Frankfurt Auto Show in its twilight years. In 2021, due to the COVID - 19 pandemic and the shortage of chips, the operation of the Munich Auto Show was extremely difficult. In 2023, although everything seemed to improve, the Munich Auto Show faced an even more difficult moment. The competition from China and the lag in the transformation of the European automotive industry's new four modernizations filled Germany's home - court with anxiety and unease.
The same is true for the Munich Auto Show in 2025.
On one hand, there is the uncertainty brought by Trump's tariff policy. On the other hand, the Chinese auto group is accelerating its overseas expansion, targeting the European market and showing its "muscle" with the entire industrial chain. The pressure from the former is only temporary, while the impact of the latter is more far - reaching. European automakers have always sent out the signal of "How can they tolerate others snoring beside their beds?", but the window period for transformation at the card - table is getting shorter and shorter.
One week before the auto show, BMW and Mercedes - Benz attached unprecedented importance and launched a wave of product "blitzkrieg" in their German home - base in advance.
On September 5th, the BMW Group's first mass - produced model of the Neue Klasse, the BMW iX3, made its global debut. Whether it is artificial intelligence, assisted driving, battery technology or design concept, they have all been elevated to a new level. Facing new challenges, the Neue Klasse is the most forward - looking strategic project in BMW's history and also the market layout and product placement for the next few decades. Its importance is self - evident.
At this high - profile press conference related to the transformation in the era of the new four modernizations and the reshaping of the brand image, Oliver Zipse, the chairman of the BMW Group, mentioned China several times. In his view, China has become the decisive battlefield for the global automotive technology competition. Especially the innovation in the field of artificial intelligence has promoted BMW to cooperate and co - create with more Chinese technology companies. The Chinese version of the iX3 to be put into production next year will deeply integrate the cutting - edge technological achievements of companies such as Alibaba, DeepSeek, and Momenta.
Mercedes - Benz is also "racing against time".
On the eve of the Munich Auto Show, the all - electric Mercedes - Benz GLC made its global debut. This model, built on the new MB.EA all - electric platform, undertakes the key mission of Mercedes - Benz's "dual - track strategy of fuel and electric vehicles" and sets the tone for the future family face and products.
"We should learn from China!"
Like BMW, the top leader of Mercedes - Benz also mentioned China. As the president of the European Automobile Manufacturers' Association, Ola Källenius, the CEO of Mercedes - Benz, admitted that China is at the forefront of the world in "decarbonization" because China's policies not only support pure - electric vehicles but also encourage technological paths such as hybrid power - "They haven't issued a comprehensive ban on fuel vehicles, haven't set a specific date, and haven't restricted specific technological paths. Europe should follow China's example in this regard."
It is rare for European established automakers like the BBA to collectively release high - profile strategies and new cars before the exhibition.
According to the analysis of the consulting firm McKinsey, automakers represented by Mercedes - Benz and BMW are a microcosm of European automakers trying to "respond" to Chinese automobiles. The importance of this year's Munich Auto Show to European automobiles is far greater than that in 2021 and 2023. The confrontation between Europe and China has escalated unprecedentedly. Chinese automakers are striving to expand in Europe, while European manufacturers are trying to adjust their directions and fight back in terms of electrification and intelligence.
The Chinese Group Penetrates into the Heart of Europe
In 2023, a total of 7 Chinese automakers participated in the Munich Auto Show. If we add Lotus and Polestar, which belong to the Geely Group, the number of the entire "Chinese group" has tripled compared with that in 2021. According to foreign media statistics, among the 29 participating automobile manufacturers this year, as many as 14 are from China, while only 10 are from the European camp.
The fact that the number of the Chinese group exceeds that of the European group is just a slice of the rise of the Eastern power. European manufacturers with a century - long history of car - making are very clear that the unprecedented scale of the participating group reflects many deep - seated advantages of the Chinese automotive industry.
One of the advantages is cost.
Europeans describe the involution in the Chinese market as a "Darwinian price war". In the competition of the past year, more and more European automakers have lost their market share in China. People have realized that if they don't make changes in time, the end of European automobiles will follow the direction of Darwin's theory of evolution, with the survival of the fittest, and they will give up their former market to others.
An expert from Accenture commented incisively:
The weak European economy is a cyclical problem, but what European automobiles need to solve are structural problems, such as the electrification transformation and the threat from China. "Facing the European market, China will only move forward, not backward. And the strong cost - control ability makes this threat not cyclical and temporary, but structural and permanent."
The second advantage is the industrial chain.
Different from previous exhibitions, the Chinese group not only brought new cars to Europe this year but also brought a whole set of solutions.
The BYD Seal 06DM - i Touring Edition made its European debut, the new XPeng P7 made its first appearance in Europe, the new Avatr concept car VISION XPECTRA participated in the exhibition, the Deepal S05 was officially launched in Europe, and the Leapmotor coupe Lafa5 made its global debut... On the surface, this is a competition among new cars, but behind it lies the full - chain advantages of leading electrification, controllable supply chain, advanced intelligence, and self - developed core technologies.
Just before the opening of the Munich Auto Show, CATL held a strategic and new product launch event for the European market locally, launched a new NP3.0 battery safety technology platform, and released the first iron - phosphate lithium power battery "Shenxing Pro" series equipped with NP3.0 technology.
CATL said bluntly that although Europe is one of the markets with the highest penetration rate of new energy in the world, users still have many concerns about battery life, charging efficiency, and low - temperature performance. These pain points are exactly what Chinese enterprises like CATL are good at solving. It is worth mentioning that three battery manufacturers, CALB, EVE Energy, and Gotion High - Tech, also participated in this Munich Auto Show, and they all have plans to build factories and other arrangements in Europe.
The third advantage is technological innovation.
Taking the field of intelligent assisted driving as an example, Chinese companies participating in the exhibition this time include Horizon Robotics, Momenta, DeepRoute.ai, Desay SV, QCraft, RoboSense, DJI, RoboSense, and Youjia Innovation. The scale of exhibitors has once again set a new record.
Although Momenta is participating in the exhibition for the first time this year, in Munich, the company plays both the role of an exhibitor and a deep - level partner of German automakers. It is the common technology provider for the BBA in the field of intelligent driving. At the Munich event where German automakers are sitting at home, many Chinese technology companies have such a dual identity, which also highlights the considerable weight of the Chinese group in the field of intelligence.
It can be seen that the impact of Chinese enterprises on European automobiles is no longer just a threat to new car sales and financial report data. Once Chinese companies are determined to go global, the former Maginot Line of European automobiles will become more and more vulnerable. At this Munich Auto Show, Chery participated in the form of an "overseas team". The two brands, OMODA and JAECOO, have become the vanguard forces for Chery to enter Europe.
Tariffs Can't Stop the Chinese
The mighty Chinese group is sending an important signal - not only do they want to participate in the largest automotive event in Europe, but they also strive to take root here, share the market cake, seize a larger share of sales, gradually eliminate some European competitor manufacturers, and become market leaders in certain fields.
According to data from JATO Dynamics, as of July this year, the market share of Chinese automotive brands in Europe has almost doubled, reaching 4.8%. The consulting firm McKinsey estimates that within the next decade, the market share of Chinese automakers in Europe will catch up with that of Japan and South Korea, which are currently 14% and 9% respectively.
"Tariffs can't stop the Chinese."
At the 2023 Munich Auto Show, the Chinese group attracted a lot of attention in Europe. But just after that auto show ended, the EU announced an anti - subsidy investigation into Chinese - made pure - electric vehicles and soon officially announced additional tariffs at the end of 2024. What Europe didn't expect was that despite the EU's adjustment of tariffs on Chinese - made electric vehicles, Chinese automobiles still achieved growth in sales and were unstoppable at this year's Munich Auto Show.
