Streets and IAA Witness Growth of Chinese Brands

Expanding Presence of Chinese Brands - Evident on City Streets and IAA Exhibitions - Growing Presence of Chinese Brands - On Highways and at the IAA Exhibition

The IAA Mobility auto show, globally renowned and held in Munich, has seen a significant shift in the automotive landscape this year. With a record number of exhibitors from China, the event is shaping up to be the most diverse platform for automobile manufacturers in its history.

Organised by the German Association of the Automotive Industry (VDA), the show has welcomed 116 Chinese brands, making up 15% of the total 748 exhibitors. This is a marked increase from previous years, and some analysts suggest it could indicate a weakening position for German manufacturers at their home event and in global auto markets.

Among the Chinese brands making a strong showing is BYD, whose registrations in Germany have increased more than fivefold compared to the same period last year, reaching around 8,500. MG Roewe remains the number one Chinese brand in Germany with over 15,600 new registrations in the first eight months. These figures, according to Jato Dynamics, give Chinese brands a significant share of over 5% in the first half of the year in Germany.

Notably, BMW will present the iX3, a new electric vehicle, at the IAA with China in its sights. This move is a clear indication of the growing importance of the Chinese market for German manufacturers.

Chinese manufacturers are also coming to Munich with plans for much cheaper electric vehicles. Inovev predicts that the IAA 2025 will be a "German-Chinese battle for dominance in the electric vehicle sector." If Volvo and Polestar, which belong to the Chinese company Geely, are included, the share of Chinese cars in Germany is over 4%, making it more than well-known brands like Toyota and Tesla combined.

However, German brands should be cautious not to underestimate their home market. Warnings about new foreign competition have been frequent in the past, but none have permanently shifted the pecking order. The overall car market in Germany is 1.87 million cars, with Chinese cars accounting for just 1.9%. Despite the growth in Chinese car registrations, German brands still hold a strong position in their home market.

As the IAA Mobility auto show continues, it will be interesting to see how the competition between German and Chinese manufacturers unfolds. One thing is certain: the show is a testament to the dynamic and ever-evolving nature of the global automotive industry.