IAA Mobility 2022: Unveiling New Models and Showcasing the Rise of Chinese Brands

2023-09-04 09:19:10

The traditional meeting of the European automotive sector will be officially opened on Tuesday by German Chancellor Olaf Scholz. However, manufacturers are taking advantage of Monday’s press day to unveil new models.

But among the groups of the Old Continent, only the German manufacturers Volkswagen, BMW and Mercedes – long national pride but today weakened – are present in force.

BMW has already presented its “Neue Klasse” (New Class) concept on Saturday, bringing together six electric cars manufactured from 2025, to meet the anticipated increase in demand with the end of combustion engines in Europe in 2035.

On the French side, Stellantis is only represented by its German brand Opel and the Renault group only by the eponymous brand, to unveil its new Scenic.

It is, on the contrary, the foreign brands that are essential: Tesla will be back at the show following ten years of absence, and even more so the Chinese competition.

It “launches its assault on Europe” with the show, summarizes Ferdinand Dudenhöffer, expert from the Center Automotive Research in Germany.

BYD, Leapmotor, Dongfeng, Geely… among the exhibitors, 41% have their headquarters in China. They threaten the dominant position of European manufacturers in the strategic market for electric models.

Chinese crucial market

Their advantage is to offer models at significantly lower prices, while entry-level electric cars are still rare.

To “be able to compete with India and China”, Mercedes boss Ola Källenius urged on Sunday “not to worsen” the state of European competitiveness by fueling the demands, strong among German unions, on the introduction of a four-day week.

Added to this are the difficulties of European producers in China. On the electric, Volkswagen, leader of the thermal market, represented only 3.1% of the market last year, far behind Chinese brands like BYD (18%) and the American Tesla with (8.7%).

“Forecasts anticipate that international groups will lose market share to locals and Tesla,” notes Eric Kirstetter, senior partner at the consulting firm Roland Berger.

Volkswagen boss Oliver Blume said he was “impressed” on Sunday evening by the “speed” of automotive technological development in China, and described it as “crucial” for the group to “succeed in the transformation to electric power. “.

According to the automotive innovation barometer by researcher Stefan Bratzel, published on Friday, “Chinese manufacturers were in 2022 “for the first time” since the start of the study in 2005 more innovative than German groups.

Ecology

At the same time, traditional manufacturers are under pressure in the face of the economic slowdown in their historic market. It threatens the insolent profits they have made since the end of the health crisis, taking advantage of inflation to inflate margins.

Because if car sales in the European Union (EU) have been increasing for twelve months, they remain more than 20% below their 2019 level.

In addition, the show should be marked, like the 2021 edition, by environmental protest.

From dawn on Monday, a handful of Greenpeace activists placed carcasses in the lake in front of the main entrance to the exhibition center.

“The auto industry continues to bet on too many, and too big, cars, and is sinking the planet with this economic model,” Marissa Reiserer, spokesperson for the NGO, told AFP.

Several groups announced “civil disobedience actions” all week; and some 1,500 people are expected at the “camp for the mobility revolution” in a park on the outskirts of Munich.

In total, 700,000 visitors are expected at the IAA, compared to 410,000 in 2021, on the stands distributed between the congress center, paying, and the city center, where free entertainment will be offered around cars… but also bicycles.

Renamed IAA Mobility in 2021, when the motor show moved from Frankfurt to Munich, the organizers want to highlight “mobility, sustainability and technology”.

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