Tesla and Chinese brands prevail at the German auto show

The electric models of the manufacturers of chinese cars and the new version of Tesla Model 3 starred this Monday at the start of the Munich Motor Show (IAA), one of the largest in the world, against a European competition in difficulties.

BMW presented its concept on Saturday “New class” (New Class) that groups six electric cars that will begin to be manufactured from 2025 to meet the increase in demand due to the end of combustion engines in Europe, expected in 2035.

Mercedes hinted at its new concept called the CLA, a particularly energy-efficient range of cars, while Frenchman Renault unveiled its new electric Scenic.

But the protagonists were foreign brands, such as the American Tesla, which presented a new version of its Model 3, the reference of the electric range, exhibited for the first time in Munich.

China for its part is “launching his assault on Europe” in this room, says Ferdinand Dudenhöffer, an expert at the Center for Automotive Research in Germany.

The BYD giant came with a series of electric models for the European market, just like other Chinese brands such as Leapmotor, Dongfeng or Geely.

Among the exhibitors, 41% are based in China. which threatens the dominant position of European manufacturers, at a time of economic uncertainty in the Old Continent, particularly due to still high inflation.

Its advantage is to offer models at significantly lower prices although Chinese competitors “will not be able to offer the same prices in Europe as in China”Volkswagen boss Oliver Blume said on Monday, referring to customs or transportation costs.

The main European manufacturer does not give up the battle for lost and assures that “We will continue working hard on our costs” Blume assured.

environmental concerns

In parallel, European producers have difficulties in China.

Volkswagen accounted for just 3.1% of the electric car market in China last year, well behind local brands BYD (18%) and SAIC (including Wuling) with 11.9% and US-based Tesla (8.7%). .

Blume described Thursday as “crucial” for volkswagen i “succeed in transformation” towards electric cars.

To do so, the German giant plans to strengthen its strategy “in China for China”locating not only the manufacturing there but also the design.

“This allows us to shorten the time to introduce new products by 30%,” explained Ralf Brandstätter, member of the executive board of Volkswagen, responsible for China.

The Munich show will be marked, like the 2021 edition, by environmental protests.

In the early hours of Monday, the day before the official opening in the presence of the German head of government, Olaf Scholz, a handful of Greenpeace activists installed car bodies in the lake in front of the main entrance of the exhibition center.

“The automotive industry continues to bet on too many cars and too big and is sinking the planet with this economic model”said Marissa Reiserer, a spokeswoman for the NGO.

Various groups have been announcing “actions of civil disobedience” all week long.

In total, 700,000 visitors are expected, compared to 410,000 in 2021. That year the show was renamed IAA Mobility coinciding with its move to Munich, after decades installed in Frankfurt.

Source: AFP