Munich's head-to-head: Are the Germans ready for the new Chinese and American powers?

On the first day of the Munich Motor Show, the editor of the Westward Journey Club sent you a report on the front battle.

After the Shanghai Motor Show in April this year surprised many German brands and the media about the rise of Chinese brands, how did the German Big Brothers prepare for the 2023 Munich IAA Mobility Show after they went back?

Chinese brands led by BYD and MG, American upstart Tesla and German brands BMW, Volkswagen, Mercedes at the Munich Motor Show in a head-to-head showdown, how to earn back some face this time?

01

Chinese competitors are in the spotlight

IAA Mobility (hereinafter referred to as the "Munich Motor Show"), Europe's most important motor show, held a press conference on Monday, September 4 local time, and was open to the public from September 5 to 10. We'll take you inside the show to learn how established European automakers are fending off the growing threat from Chinese rivals like U.S. upstart Tesla and BYD.

The battlefield is clear: electric vehicles, autonomous driving, long-range fast-charging batteries and user-friendly software functions are new technologies that are hot topics at the show.

The number of Chinese brands attending the show this year will be nearly double that of 2021, when coronavirus travel restrictions discouraged many exhibitors and visitors.

Industry insiders believe that BYD and SAIC's MG are the main threats to European brands. BYD and MG are gradually expanding into Europe, targeting key markets and building retail networks. Both companies hope to open factories in Europe.

In the first half of 2022, the average price of an electric car in China was less than 32,000 euros ($35,000), compared to about 56,000 euros in Europe, according to researchers at JATO Dynamics.

Gilles Le Borgne, head of engineering at Renault, told reporters on Sunday: "From a macroeconomic point of view, Europe needs to stop being naïve in the face of China. He noted that China controls the entire battery supply chain.

The arrival of Chinese electric car manufacturers has raised concerns that they will weaken the competitiveness of local automakers and dominate sales of electric vehicles.

So what is the reaction of European automakers to the "catfish" from China?

02

The European giants worked in unison

Industry analysts and executives told the auto show that European automakers are working to eliminate China's lead in developing affordable electric vehicles.

Their strategy echoes that of Japanese and Korean automakers such as Toyota, Hyundai and Kia. The fact that there will be no Japanese or Korean brands at the show underscores the attention of Chinese newcomers.

The giants of Europe did not stand still. Volkswagen, BMW, Mercedes-Benz and Renault will unveil their latest electric vehicles in Munich.

Tesla also made a rare appearance at auto shows.

The new Tesla Model 3 with a "front-face overhaul"

It will be publicly unveiled at the Munich Motor Show

European supplier giants such as Robert Bosch, Continental and Valeo also face increasing competition from Chinese rivals and U.S. tech giants in areas such as autonomous driving, battery technology and software.

Qualcomm, Nvidia and Intel's Mobileye will join Google and Amazon to highlight their latest technologies.

On September 6, the World New Energy Vehicle Congress will hold the China Electric Vehicle Show as part of the Munich Motor Show, which is the first time the show will be held outside of China. BMW CEO Oliver Zipse and Mercedes-Benz CEO Ola Kallenius were also in the speech.

Luca de Meo, CEO of Renault, said: "This is going to be a battle. They (Chinese EV manufacturers) are clearly very competitive in the EV value chain. ”。“ I think they are a generation ahead of us. ”

"We need to catch up as soon as possible," he added.

Chinese automakers, including MG, BYD and Xpeng, are all targeting the European electric vehicle market. In the first seven months, European EV sales surged nearly 55 percent to about 820,000 units, or about 13 percent of all car sales.

Renault unveiled a battery-electric version of its Scenic compact crossover at Monday's auto show. De Meo said Scenic's pricing will be at a level that many customers will be able to achieve, similar to hybrid models of the same size and category.

Renault said it will announce prices for the Scenic E-Tech later this year, with launches scheduled for the first quarter of 2024.

 Renault Scenic E-Tech

03

BBA, Volkswagen, and German brands all show their talents

BMW CEO Oliver Zipse said Chinese brands posed an "imminent risk" to European mass-market automakers.

Zipse told the Financial Times on the sidelines of the show: "The underlying car market will either disappear or it won't be done by European manufacturers. ”

BMW presented its new generation of electric car Vision Neue Klasse concept in Munich.

BMW Vision Neue Klasse concept

With its Vision Neue Klasse concept, BMW showed in advance the design study of the i4-size all-electric sedan, which is already close to mass production and will be launched in 2025. BMW said the concept car's design has been "streamlined to the extreme." BMW classic features such as the Hofmeister kink Hofmeister kink on the rear pillar, the kidney-shaped grille and the shark-nosed reverse sloping front end have been retained and updated to provide a look more in line with the characteristics of the era.

It is worth mentioning that the Hofmeister kink, a visual design element, was introduced in 1962 and has since appeared on almost all BMW models. In 2022, to commemorate the 60th anniversary of Hofmeister Kink, BMW has created a new hofmeisterkink.com to enable BMW owners and enthusiasts to find and experience roads shaped like a unique "kink" design.

Mercedes unveiled the concept CLA-Class electric sedan, unlocking its new range of compact sedans in advance to visitors.

Mercedes-Benz CEO Ola Kallenius described the EV road as a marathon, and the company currently has only eight or nine kilometers.

Kallenius said on the sidelines of the show: "It's important to maintain tactical flexibility and strategic clarity in this game. ”

Mercedes CEO Ola Kallenius

Introduced the CLA-class concept car

Audi will present a new display operation concept in its Q6 E-tron, which will be presented as a camouflage prototype. The Q6 E-tron is the first of Audi's new generation of all-electric vehicles. Audi will also demonstrate how the Q6 E-tron PPE platform, developed jointly with Porsche, will provide the technical basis for the brand's future e-mobility offerings.

The Volkswagen Group unveiled a performance version of its upcoming ID2 small electric car, which will feature GTI badges and DarkRebel display cars for its Cupra brand, highlighting the automaker's new design-oriented approach across 10 brands.

Conclusion

At the exhibition in Munich, the presence of Chinese car brands was deeply felt. Around 41% of this year's exhibitors are headquartered in Asia, doubling the number of Chinese companies exhibiting compared to Munich 2021.

Xpeng announced in Munich that it will enter the German and French markets from 2024, launching the G9 and G6 SUVs and the P7 large sedan. Xpeng's popularity soared after Volkswagen recently announced it would partner with Xpeng to develop an electric model for its cheap Jetta brand in the Chinese market.

BYD showcased the Seal U crossover and Seal sedan at the show.

Fabian Brandt of consulting firm Oliver Wyman said of the show: "The German automotive industry used to demonstrate its extremely strong position, but now it is an equal meeting between progressive players from all over the world, especially China. ”

Article Source:

Automotive News Europe， Chinese brands, Tesla face off with BMW, VW, Mercedes at Munich show，作者PAUL MCVEIGH 

Automotive News Europe， Europe needs to catch up on EVs is key message from Munich auto show, 作者Staff anfd wire