Xpeng CEO He Xiaopeng speaks to reporters on the electrical carmaker’s stand on the IAA auto present in Munich, Germany on September 8, 2025.
Arjun Kharpal | CNBC
Germany this week performed host to one of many world’s greatest auto reveals — however within the heartland of Europe’s auto business, it was buzzy Chinese language electrical automotive corporations seeking to outshine a number of the area’s greatest manufacturers on their house turf.
The IAA Mobility convention in Munich was packed stuffed with corporations with big stands exhibiting off their newest automobiles and know-how. Amongst a number of the greatest shows had been these from Chinese language electrical automotive corporations, underscoring their ambitions to broaden past China.
Europe has turn into a focus for the Asian corporations. It is a market the place the standard automakers are seen to be lagging within the growth of electrical automobiles, even as they ramp up releases of new cars. On the similar time, Tesla, which was for therefore lengthy seen as the electrical car market chief, has seen sales decline in the region.
Regardless of Chinese language EV makers going through tariffs from the European Union, gamers from the world’s second-largest economic system have responded to the ramping up of competitors by setting aggressive gross sales and growth targets.
“The present development of Xpeng globally is quicker than we now have anticipated,” He Xiaopeng, the CEO of Xpeng informed CNBC in an interview this week.
Aggressive growth plans
Chinese language carmakers who spoke to CNBC on the IAA present signaled their bold growth plans.
Xpeng’s He mentioned in an interview that the corporate is seeking to launch its mass-market Mona series in Europe subsequent yr. In China, Xpeng’s Mona automobiles begin on the equal of just below $17,000. Bringing this to Europe would add some critical value competitors.
In the meantime, Guangzhou Automobile Group (GAC) is concentrating on fast development of its gross sales in Europe. Wei Haigang, president of GAC Worldwide, informed CNBC that the corporate aims to sell around 3,000 cars in Europe this year and not less than 50,000 items by 2027. GAC additionally introduced plans to deliver two EVs — the Aion V and Aion UT — to Europe. Leapmotor was additionally in attendance with their very own stand.
There are indicators that Chinese language gamers have made early in roads into Europe. The market share of Chinese language automotive manufacturers in Europe practically doubled within the first half of the yr versus the identical interval in 2024, although it nonetheless stays low at simply over 5%, according to Jato Dynamics.
“The numerous presence of Chinese language electrical car (EV) makers on the IAA Mobility, alerts their rising ambitions and confidence within the European market,” Murtuza Ali, senior analyst at Counterpoint Analysis, informed CNBC.
Tech and devices in focus
Most of the Chinese language automotive corporations have positioned themselves as know-how corporations, very like Tesla, and their automobiles spotlight that.
Most of the electrical automobiles have large screens geared up with flashy interfaces and voice assistants. And in a bid to lure patrons, some corporations have included extra devices.
For instance, GAC’s Aion V sported a fridge in addition to a therapeutic massage perform as a part of the seating.
The Aion V is without doubt one of the automobiles GAC is launching in Europe because it appears to broaden its presence within the area. The Aion V is on show on the firm’s stand on the IAA Mobility auto present in Munich, Germany on September 9, 2025.
Arjun Kharpal | CNBC
That is a technique that the Chinese language gamers sought to distinguish themselves from legacy manufacturers.
“The probabilities of success for Chinese language automakers are robust, particularly as they’ve an edge by way of affordability, battery know-how, and manufacturing scale,” Counterpoint’s Ali mentioned.
Europe’s carmakers push again
Legacy carmakers sought to flex their very own muscle tissues on the IAA with Volskwagen, BMW and Mercedes having among the many greatest stands on the present. Mercedes particularly had promoting displayed all throughout the entrance entrance of the occasion.
BMW, just like the Chinese language gamers, had a giant give attention to know-how by speaking up its so-called “superbrain architecture,” which replaces {hardware} with a centralized pc system. BMW, which launched the iX3 on the occasion, and chipmaker Qualcomm additionally announced assisted driving software that the 2 corporations co-developed.
Volkswagen and French auto agency Renault additionally confirmed off some new electrical automobiles.
Whatever the product blitz, there are nonetheless considerations that European corporations will not be transferring quick sufficient. BMW’s new iX3 is predicated on the electrical car platform it first debuted two years ago. In the meantime, Chinese language EV makers have been fast in bringing out and launching newer fashions.
“A dedication to legacy constructions and incrementalism has slowed its skill to construct and leverage a strong EV ecosystem, leaving it behind fast paced rivals,” Tammy Madsen, professor of administration on the Leavey College of Enterprise at Santa Clara College, mentioned of BMW.
Whereas European autos have a robust model historical past and their CEOs acknowledged and welcomed the competitors this week in interviews with CNBC, the Chinese language will not be letting up.
“Europe’s automakers nonetheless maintain important model worth and legacy. The problem for them lies in attaining manufacturing at scale and adopting new applied sciences sooner,” Counterpoint’s Ali mentioned.
“The Chinese language certainly will not be ready for anybody to catch-up and are making important good points.”
