VW, BMW and Renault take the fight to Chinese rivals

Automobile giants in Europe start the Blitz product, trying to resist Strengthening the competition from Chinese competitors to their home lawn.

On the eve of the IAA Mobility Conference, the main outlet Volkswagen and Bmw Both presented new electric cars.

With a high accent on the software, Volkswagen disclosed A small concept is an ID.Cross car, because it seems to double the dominance of electricity in Europe.

BMW meanwhile introduce World’s IX3 Sports Utility Car showing the so -called “Architecture Superbrain“Replacing the equipment with a centralized computer system.

France RenaFor its part, also launched the sixth generation of its best -selling CLIO model, as well as Renault 5 Turbo 3e which it described As the first electric “mini -commander”.

The launch of the product demonstrates how in Europe’s heritage manufacturers to fight its Chinese competitors, seeking both the market share in the European Union, and to compensate for sales in China, the largest world market.

The Europe’s automobile sector is now struggling with many problems growth of production costs by US Tariffsas and as Disabilities of the supply chain and normative pressure.

Rico Luman, Senior Economist of the Transport and Logistics Sector at the Dutch Bank Ing, said launching Volkswagen and BMW models is primarily intended for the European market.

“We know that Chinese players are evaluated for their digital functions among European consumers,” Luman said by Email CNBC.

“This is clearly a signal that they are increasing competition with competitors only EV by entering the next level technology for their models,” he added.

For Volkswagen available EV is an “important strategic focus” to try to unlock and maintain the market share, Luman said.

Volkswagen CEO Oliver Bloom said he was not afraid of the competition of Chinese players.

“The competition is very positive for me. It’s like in sports: if you have good competitors, you should be better. This is what we have been willing to do in recent years, in terms of improvement,” said Bloom Annette Weisbach on Monday.

Chinese car manufacturers such as byd and XPeng have fast -made invasion In the market of cars in Europe in recent months, the benefit of the combination of factors, which means that they are able to produce EV more cheap than their competitors.

The growth of the Asian giant’s automobile sector was linked to subsidies, tax benefits and between 2009 and 2023, en According to estimates 230 billion dollars to develop EV. Analysts also referred to the lower labor costs, weaker yuan, innovative technological developments and a reliable chain of battery supplies among Beijing’s key preferences.

However, in Munich this week, BMW CEO Oliver Zips said the IAA Mobility Conference would demonstrate the power of the German and European automotive industry.

“You will see a lot of competitors showing their capabilities but also BMW,” Zipse CNBC said on Friday.

“This is not a competition/or competition. It happens at the same time. And I think this is the only message in this car show: this industry is connected (worldwide) and it’s something for protection,” ZIPS said.

Else place Claus Rosenfeld, CEO of German Car Manufacturers SchaefflerCNBC said that the IAA conference will be a demonstration of “confidence” and “optimism” for European auto industry this week.

“It is very encouraging to see that, in particular, the German automotive industry has done a homework, despite all these geopolitical problems, competition (and) things that happen around us, which are unpredictable,” said Rosenfeld.

Schaeffler CEO described China as the “most important” market market, saying that a company that can succeed in China could succeed in the world.

“This, from my point of view, is the most important thought you should have when you think about the future,” Rosenfeld said.