IAA Mobility 2025 China's Auto Industry Appears Tame Ahead of IAA

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Chinese automakers aim to use the IAA in Munich to draw the attention of European customers to their new models. Some of these have been specifically developed for customers in Europe.

BYD, Xpeng, and Leapmotor are among the leading manufacturers in China. They and other OEMs aim to use the IAA to captivate European customers with their new electric vehicles and hybrids. Some models have been specifically developed with the European market in mind.

BYD will showcase its station wagon, the “Seal 06 DM-i Touring,” for the first time in Munich. It is one of the new plug-in hybrids that BYD aims to push into the European market, despite the additional EU tariffs on its pure electric vehicles. This model is designed as a competitor to the VW Passat.

Xpeng will present an updated version of its electric sedan, the “P7,” which boasts shorter charging times and a higher range than before. Leapmotor, which is collaborating with European manufacturer Stellantis, plans to present its “B05” in Munich, positioned as an alternative to VW's ID.3.

China Emphasizes Cooperation—No Aggressive Stance

While European media commonly refer to Chinese automakers as "challengers" or "attackers," Chinese trade publications strongly emphasize the many partnerships between Chinese and European car brands in their previews of this year's IAA.

In this context, plans between Stellantis and Leapmotor to jointly build electric cars near the Spanish city of Zaragoza are highlighted, in close proximity to a newly constructed battery factory built in collaboration with CATL.

European and Global Premieres

The Geely Group’s brand Polestar will present its “Polestar 5” in Munich, featuring a chassis made from aluminum using a new technique that eliminates the need for welding.
 In the slightly more affordable price range, Chery Automobile plans to showcase its brands Omoda and Jaecoo to German automotive experts at the IAA for the first time. Among the models on their way to Munich are the “Omoda 5” and the “Jaecoo 7,” which include both electric vehicles and plug-in hybrids.

Plug-in Hybrids Become More Important for Chinese Imports

It has become increasingly clear that plug-in hybrids represent a significant pillar of the Chinese push into the European market. For example, in July, hybrids from China managed to increase their market share in Europe to nearly ten percent, according to statistics from the market research company Dataforce. A new record.

Pure electric vehicles from China are also performing well, despite the EU tariffs. Ten percent of all sales of pure electric cars in July were accounted for by Chinese brands. They have managed to capture over five percent of the total automotive market for three consecutive months.

Car Brands with Hybrid Portfolios Benefit

Chinese car companies have recently performed particularly well in the rapidly growing hybrid categories, writes Julian Litzinger, an analyst at Dataforce. In fact, sales of plug-in hybrids in Europe have surged by over 50 percent recently. Brands like BYD, which heavily rely on hybrid drives, are especially benefiting from this trend.

“The increase doesn’t seem to be over yet,” Litzinger adds. With the introduction of more hybrid models, there is still “growth potential.”

Large Number of Chinese Suppliers

In addition to car manufacturers, many suppliers from China will also exhibit at the IAA. Dozens of suppliers from China are expected in Munich this time. The world's leading battery manufacturer CATL will showcase its new technology. Lidar specialist Hesai, on the other hand, plans to present a 3D laser scanner for automated driving.

Start-ups such as Deeproute.ai and Momenta will also have booths in Munich. Momenta is currently developing a robotaxi service for Europe in collaboration with Uber.

Experts and car enthusiasts will have the opportunity to see the entire automotive ecosystem of the Chinese automobile industry at the IAA, demonstrating how German automakers like Volkswagen or Porsche and German suppliers from Bosch to Continental are responding.