Insight from IAA Mobility Festival, Munich

Chinese Electric carmakers taking over- entering Europe- setting up clash with US,EU Auto Giants. Some quick insights on what Silvia Maseda discovered at IAA MOBILITY .

Silvia Maseda is Partner for the Executive Interim and Consulting offering across International Territories at The McLean Partnership .

• The IAA in Munich 2023 was dominated by Chinese electric car firms looking to expand their presence on the continent.
• German automakers are trying to catch up with China in producing more electric vehicles .The I.A.A Mobility show in Munich was full of Chinese automakers, prepared to enter Europe and expand their operations internationally. European automakers must step up their game if they don’t want to be left behind!
• Companies from 比亚迪 to Leapmotor launched electric vehicles for international markets while XPENG Motors 小鹏汽车 shared plans to expand into more European markets, including Germany, Britain, and France in 2024.
• Many of the European carmakers have been seen as lagging behind in their push into EVs at a time when Chinese players having been launching dozens of new vehicles. German carmakers are determined to tackle the problems they face in producing competitive electric vehicles, an executive at Chinese EV maker Xpeng said on Wednesday, 6th Sept 2023 (at the IAA in Munich) as China's carmakers put pressure on European rivals in the race to electrify. German carmakers have shown their "strongest determination ever to change" to try and catch up and address their challenges. Europe's car industry scrambles to ramp up production of electric vehicles with the help of partnerships and investments.
• Start-ups like Xpeng still need to leverage German automakers' scale, branding and investments to lower costs and survive in an ever more crowded market. Chinese companies including Xpeng, BYD and Leapmotor?are?seeking?the higher margins and faster growth overseas markets can offer, which means they are challenging European companies on their home turf with cheaper models.
• German Chancellor Olaf Scholz said EV?competition?from abroad should be a motivation, not a worry for German carmakers.
• The market is not mature enough and the whole industry is still exploring what a good business model could look like, what is clear is that there are still many ways German and Chinese companies can collaborate with their different strengths- joining forces is key.

Get more expertise from Silvia Maseda and find out how we can work with you.