Chinese firms EV take the fight against European automakers on their home lawn

This week, Germany participated in one of the largest car shows in the world – but in Heartland of Europe’s Auto Industry, these were dense Chinese electric companies that sought to overcome some of the largest brands of the region on their home lawn.

The IAA Mobility Conference in Munich was filled with huge stands that show their latest cars and technology. Some of the biggest displays were those of Chinese electric cars, emphasizing their ambitions for China.

Europe has become a coordination center for Asian firms. This is a market where traditional automakers are lagging behind the development of electric vehicles, Even if they build up new cars. At the same time Teslawhich is so long regarded as the leader of the electric car market has There is a decrease in sales in the region.

Despite the fact that Chinese EV manufacturers have encountered tariffs from the European Union, players of the second largest economy in the world responded to the competition, setting aggressive sales and expansion targets.

“The current XPeng growth worldwide is faster than we expected,” he is Xiaopen, CEO XPeng told CNBC in an interview this week.

Chinese cars that talked to CNBC at the IAA exhibition signal their ambitious expansion plans.

In an interview XPeng he said the company is trying to launch its Series Mana Mana Mona in Europe Next year. In China, Mona XPENG cars start with an equivalent of just under $ 17,000. Adopting this to Europe will add serious price competition.

Meanwhile, Guangzhou Automobile Group (GAC) aimed at rapid growth of their sales in Europe. Wei Haigang, President Gac International, said CNBC that company company This year seeks to sell about 3000 cars in Europe and at least 50,000 units before 2027. Gac also announced plans to bring two EV – Aion V and Aion UT to Europe. Jump He also attended his own position.

There are signs that Chinese players have made early on the roads to Europe. The share of the Chinese car brands in Europe has almost doubled in the first half of the year compared to the same period of 2024, although it remains low at a slightly over 5%, according to Jacob’s dynamics.

“A significant presence of Chinese electric vehicles (EV) on IAA mobility, signals their growing ambitions and confidence in the European market,” said CNBC Murtuza Ali, Senior CounterPoint Research.

Many Chinese car firms are located as technology companies, like Tesla, and their machines emphasize this.

Many electric vehicles have large screens equipped with bright interfaces and voice helpers. And, trying to lure buyers, some companies have included additional gadgets.

For example, Aion V GAC put a refrigerator as well as a seat massage function.

This is one way that Chinese players sought to be different from elderly brands.

“The chances of success for Chinese automakers are strong, especially since they have the advantage in accessibility, battery technology and production scale,” Ali CounterPoint said.

Hereditary manufacturers of manufacturers sought to flex their own muscles on IAA with VolkwagenBMW and Mercedes having one of the biggest stands at the exhibition. In particular, Mercedes showed advertising at the front of the event.

BMW, like Chinese players, had great attention technology, talking to the so -called “Architecture Superbrain“Replacing the equipment of the centralized computer system. BMW, which submitted ix3 at the event, and also the Qualcomm chips manufacturer Declined Software to driving a car that both companies collaborated.

Volkswagen and French autonology Renault also showed several new electric cars.

No matter what the Blitz product is still problems that European companies are moving fast enough. The new ix3 BMW is based on the electric car platform that first it first debuted two years ago. Meanwhile, Chinese EV manufacturers quickly output and run new models.

“A commitment to elderly structures and graduality has slowed down its ability to build and use a reliable EV ecosystem, leaving it after a quick moving competitors,” said Madsen BMW, Professor at Business Leaky of Santa Clara.

While in a European car Interview with CNBCThe Chinese are not released.

“Europe’s automation is still of considerable value and a brand heritage. The task for them is to achieve production and will bring new technologies faster,” Ali CounterPoint said.

“The Chinese are definitely not waiting for someone to catch and bring considerable income.”