German Auto Industry Shines at IAA Munich

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The German automotive industry is presenting itself stronger than it has in a long time at its flagship trade fair, IAA Mobility 2025, in Munich. It almost seems like a final surge against increasingly fierce competition from China, which is the second-strongest represented with 100 exhibitors.

The IAA carries the “Mobility” label for good reason, as alongside cars, solutions and concepts for autonomous buses and trains are on display in Munich under the motto “It’s All About Mobility.” However, these are somewhat overshadowed by the many new cars being showcased.

VW commits to e-mobility

While some manufacturers, such as Porsche and Opel, are rowing back, Volkswagen’s CEO, Oliver Blume, is fully committed to e-mobility at this year’s IAA in Munich. This starts with four compact cars, including the ID.Polo, which is set to go on sale in mid-2026 for just under 25,000 Euro, with an all-electric powertrain. This is also a challenge to Chinese providers like BYD, which is located right across from VW and is already selling e-cars for 20,000 Euro on German and European roads, but still lacks the necessary sales and returns networks to compete with German manufacturers. The fact that VW has moved away from using numbers for its new e-cars and is revisiting its former successful brand names is likely no coincidence, but rather a deliberate decision. Customers in Germany remain loyal to their brands. However, German and other European manufacturers are also feeling the pressure from Chinese competitors, who are rapidly gaining ground in terms of digitalization and on-board electronics.

This is now set to change, and has already done so in many cases. German manufacturers have made significant digital strides and are also working on new battery technologies with longer ranges, to prevent being left behind.

Higher ranges at a relatively affordable price

The e-offensive from BMW is garnering a lot of attention, with some models evoking memories of 1960s sports cars, while also offering unexpectedly high ranges. The new BMW iX3 is set to achieve a WLTP (Worldwide Harmonised Light-Duty Vehicles Test Procedure) range of 800 kilometers, thanks to its 800-volt technology, and thus further than Mercedes’ new top model, the GLC 400 4Matic, which is expected to have a range of between 571 and 712 kilometers.

With solid-state batteries, which the two top brands are already working on in cooperation with Solid Power and ProLogium, WLTP ranges of over 1,000 kilometers are expected to be achievable. This should slowly take the wind out of the sails of die-hard diesel fans, were it not for the high prices of e-cars. For all-electric all-wheel-drive cars, you can expect to pay around 60,000 Euro without many extras.

At the same time, the German industry and its spokesperson, VDA President Müller, are calling on policymakers to do more, such as improving the charging infrastructure and ensuring affordable electricity prices. The prices for charging at public charging stations are often still too high and too opaque, which deters many potential buyers.

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Source title image: Unsplash / Anastasiya Dalenka