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The CEO of Xpeng, he Xiaopeng spoke to reporters at the IAA Electric Car Stand in Munich, Germany on September 8, 2025.
Arjun Harpal | CNBC
Germany has hosted one of the largest car shows in the world this week -but in the Heartland of Europe automotive industry, these were Buzzy Chinese Electric Car companies seeking to outsmart some of the largest brands in the region of their home.
The IAA Mobility Conference in Munich was full of companies with huge stands, showing their latest cars and technologies. Some of the largest displays were those from Chinese electric car companies, emphasizing their ambitions to expand beyond China.
Europe has become a focal point for Asian companies. This is a market where traditional car manufacturers show that they are lagging behind in the development of electric vehicles, Even while they are intensifying editions of new carsS At the same time, Teslaseeing so long as a leader in the electric vehicle market, has I saw a decline in sales in the regionS
Despite Chinese EV manufacturers facing European Union tariffs, players from the world’s second largest economy responded to increasing competition, setting aggressive sales and expansion goals.
“The current XPeng growth worldwide is faster than we expected,” he Xiaope, CEO of Xpeng He told CNBC in an interview this week.
Aggressive expansion plans
Chinese car manufacturers who talked to CNBC during the IAA show reported their ambitious expansion plans.
He said XPeng said the company was looking to start its A series of mass markets in Europe Next year. In China, Xpeng’s Mona cars start in the equivalent of just under $ 17,000. The transfer of this to Europe would add serious pricing competition.
Meanwhile, Guangzhou Automobile Group (GAC) is aimed at rapid growth of its sales in Europe. Wei Haigang, President of GAC International, told CNBC that the company Aims to sell about 3,000 cars in Europe this year And at least 50,000 units by 2027, GAC also announced plans to bring two EV – Aion V and Aion UT – in Europe. Leapmotor They also attended their own position.
There are signs that Chinese players made the roads in Europe at the beginning of the roads. The market share of Chinese car brands in Europe has almost doubled in the first half of the year compared to the same period in 2024, although it still remains low by just over 5%, according to Jato Dynamics.
“The significant presence of Chinese electric vehicle manufacturers (EV) in IAA mobility has signaled their growing ambitions and confidence in the European market,” Murtuza Ali, a senior analyst at Counterpoint Research, told CNBC.
Technology and gadgets in focus
Many Chinese car companies have positioned themselves as Tesla -like technology companies, and their cars emphasize this.
Many electric vehicles have large screens equipped with smooth interfaces and voice assistants. And in an attempt to lure buyers, some companies include additional gadgets.
For example, Aion V of GAC Veds A Colliger, as well as a massage function as part of seating areas.
Aion V is one of the cars that GAC starts in Europe as it seems to be expanding its presence in the region. Aion V is on the booth of the company at the IAA Mobility Motor Show in Munich, Germany on September 9, 2025.
Arjun Harpal | CNBC
This is one way for Chinese players to strive to distinguish themselves from inherited brands.
“The chances of success for Chinese car manufacturers are strong, especially since they have an advantage in accessibility, battery technology and a production scale,” said Ali of Counterpoint.
Europe car manufacturers are repelled back
Inherited car manufacturers sought to bend their own muscles in IAA with VolkquagenBMW and Mercedes as one of the largest booths of the show. In more special, Mercedes was shown advertising throughout the front entrance of the event.
BMW, like Chinese players, had a great focus on technology by saying the so -called “Superbra architecture“which replaces the hardware with a centralized computer system. BMW that introduced the ix3 of the event, and chipmaker Qualcomm declared assisted driving software that the two companies have been developed.
Volkswagen and the French car company Renault also showed some new electric cars.
Regardless of the Blitz product, there are still fears that European companies are not moving fast enough. BMW’s new ix3 is based on the electric vehicle platform that is first Debut two years agoS Meanwhile, Chinese EV manufacturers are quickly appearing and launching more new models.
“The commitment to the inherited structures and incrementalism has slowed its ability to build and use a healthy Ecosystem EV, leaving it after fast -moving rivals,” says Tammy Madson, Professor of Leavey University at the University of Santa Clara, for BMW.
While European cars have a strong brand history and their executive directors have recognized and welcomed competition this week through Interviews with CNBCThe Chinese do not let go.
“Automobile manufacturers in Europe still have considerable value and inheritance of the brand. The challenge for them is to achieve production on a scale and faster the perception of new technologies,” ALI told Counterpoint.
“The Chinese are certainly not waiting for anyone to catch up and make significant profits.”
