IAA Mobility 2025: Chinese automakers challenge Europe’s EV stronghold

What happens when Europe’s storied automakers and China’s fast-rising EV players converge on the same stage? IAA Mobility 2025 in Munich offered a vivid glimpse of an industry in flux, where legacy and innovation collide, and the balance of power is shifting eastward. 

Europe’s automakers faced growing pressure from Chinese rivals. Legacy OEMs unveiled their latest electric offerings with familiar fanfare, but the Chinese presence turned what was once a European stronghold into contested ground.

In one part of Munich’s auto show, European brands aimed to reassure investors with new electric vehicle (EV) launches, revamped platforms and digital upgrades. Elsewhere, Chinese automakers and suppliers displayed their strengths: scale, speed and cost advantage. The upshot: the race to define the next era of mobility is no longer regional—it’s global. Read on for more IAA Mobility 2025 highlights.

Europe’s OEMs used IAA Mobility to showcase their electric ambitions—from heritage-inspired concepts to long-range EVs—signaling they are not standing still. 

• Audi’s Concept C, for example—a minimalist, retro-futuristic two-seater drawing on the 1930s Auto Union Type C and third-generation A6—stood out for blending heritage with innovation.
• BMW followed with the iX3, the first production model from its much-anticipated Neue Klasse project, which promises a 500-mile range. 
• Volkswagen targeted the urban market with its Electric Urban Car Family, unveiling the ID.Polo and ID.Cross concepts. The latter previews an all-electric T-Cross, which is launching in 2026 with a 211 PS motor, 260-mile range and 450-liter trunk.
• Porsche brought performance flair with an electrified 911 Turbo S using a new T-Hybrid system capable of 0–62 mph in 2.5 seconds. It also previewed an all-electric Cayenne, due by year’s end, featuring a wireless charging system using a conductive pigment coating, and claimed to be the first automaker to offer an 11-kW one-box base plate system.
• Mercedes-Benz unveiled the GLC EQ, the successor to the EQC, featuring dual motors, rapid charging, a 443-mile range and a striking 39.1-inch AI-enabled dashboard. With more cabin space and smarter UX, it reinforces the brand’s premium EV ambitions.

Yet beneath the polished presentations, unease lingered. Germany’s automotive giants face a three-front crisis: Chinese competition eroding market share, 15% US tariffs and domestic policy decisions adding regulatory and financial strain.

Related news: Learn more about automotive developments in Germany, such as how they’re leading Europe’s open-source automotive software drive in our recent article.

IAA Mobility also featured Chinese EVs in Europe—from affordable hatchbacks to futuristic concepts—as Chinese automakers accelerate their expansion on the continent.

• BYD unveiled the Dolphin Surf, its first European-made model, alongside hybrid offerings like the Seal 6 DM-I Touring. 

• GAC introduced the Aion V SUV, emphasizing safety and rapid charging.

• Leapmotor launched the Lafa5 and debuted the B10 in Europe, including the B05, a compact hatchback aimed at young urban drivers and priced under £30,000. It will compete directly with the VW ID.3 and feature a streamlined design, frameless doors and 19-inch alloy wheels.

• Lucid Motors presented its seven-seater Gravity SUV, with European deliveries starting in January. 

• Chinese EV maker Avatr showed its Vision Xpectra concept, a sleek four-seater with inflatable headrests and a greenhouse-style roof.

• Aito, the joint venture between Huawei and Seres, made its European debut with the Aito 5, 7 and 9 SUVs. Although not new, these range-extending hybrids are expanding globally, starting with the Middle East. Plans include a UAE-based subsidiary and local supply chain.

• XPeng took a more futuristic route, unveiling AI-powered vehicles, flying cars and humanoid robots. The European debut of its Next P7 sports sedan and a new R&D center in Munich underscore its long-term ambitions, including Level 4 autonomous capabilities by 2026.