[IAA2023] Chinese Electric Cars Fill 'Absent' Korean Spots... "Catching Up with the Big Three German Automakers"

47 Chinese Companies Including BYD and CATL Participate
More Than 16 Korean Companies
"Will Showcase Technology as Good as the Big Three German Automakers"
Cost-Effective Hyundai and Kia Seen Often in Munich
Chinese Electric Vehicles May Dominate in the Electrification Era

On the 4th (local time), I was riding a bus in downtown Munich, Germany. A Kia Sportage passed by the bus waiting at a traffic light. Hyundai i30 and Sonata were parked on the street. In this place where domestic car manufacturers dominate, Korean-made vehicles are frequently seen. Word of mouth about their low price and good fuel efficiency has led many locals to start purchasing them. Kim, an interpreter who has lived in Germany for 30 years, said, “They are recognized as a cost-effective brand.” However, by 2030, when there will be a significant shift from internal combustion engine vehicles to electric vehicles, Chinese electric cars such as BYD might dominate here more than Hyundai and Kia. This is because many Chinese companies participated in the 2023 IAA Mobility Show held in Munich, eliciting positive reactions from locals.

On the 4th (local time), a Kia car is parked on a street in downtown Munich, Germany.
Photo by Oh Gyumin

At the Munich exhibition center where the mobility show is held, I visited booths of five Chinese car companies: BYD, CATL, Seres, Leap Motor, and Forthing. These companies came to showcase their technological capabilities as much as Germany’s proud Big Three automakers and are targeting the European market.

BYD, which holds the record for the highest global electric vehicle sales, designed a spacious booth. It appeared about twice as large as Mercedes-Benz's booth located in the same hall.
[Photo by Oh Gyumin moh011@]

Among Asian companies participating in this show, China accounted for the largest share. Out of a total of 671 companies, 324 were foreign companies outside Germany. Among these, 84 were Asian companies. China accounted for more than half with 47 companies. In contrast, Korean companies numbered only 16.

BYD's large electric sedan 'Seal' sports utility vehicle (SUV) model 'Seal U'
Photo by Oh Gyumin moh011@

BYD, which holds the world’s number one record for electric vehicle sales, built a large booth. It appeared about twice as large as Mercedes-Benz’s booth located in the same hall. On this day, BYD unveiled the European debut of the ‘Seal You,’ an SUV model of its large electric sedan ‘Seal.’ Local evaluations of this company’s vehicles were very positive. A journalist from Switzerland said BYD has potential for further growth, adding, “Many people are buying because of reasonable prices and good quality.” Concerns about the lithium iron phosphate (LFP) batteries used in these vehicles were described as ‘unfounded.’ These batteries have the drawback of reduced energy efficiency in cold temperatures such as winter. However, the journalist said, “Switzerland is cold in winter, but people don’t really consider this a disadvantage.”

BYD's 'Seal' center display can adjust the screen position.
Photo by Oh Gyumin moh011@

CATL, which holds the number one market share for electric vehicle batteries, prominently showcased its ‘Shenxing’ battery announced last month. The company explained that this LFP battery can travel 400 km with just a 10-minute charge. It also has strengths in slow charging. A CATL representative said, “Fast charging takes only 10 minutes, and slow charging is sufficient within 2 to 3 hours.”

CATL, leading the market share for electric vehicle batteries, exhibited the LFP battery 'Shenxing' that can travel 400 km with a 10-minute charge.
[Photo by Oh Gyumin moh011@]

The reason many Chinese car companies participated appears to be to demonstrate that their electric vehicles can compete sufficiently with existing manufacturers. A representative from Chinese electric vehicle startup Leap Motor said, “Our technology has developed as much as local car companies,” adding, “Our goal is to show this directly on site.” This company was approached by Volkswagen for technological cooperation. Volkswagen is considering purchasing Leap Motor’s electric vehicle platform technology to apply it to the production of its sedan ‘Jetta.’

Chinese electric vehicle startup Lingpao booth
Photo by Oh Gyumin moh011@

Many electric vehicle designs made by Chinese companies imitated existing companies’ designs. For example, the front lighting of Leap Motor’s electric SUV C10, unveiled for the first time at this mobility show, resembles the ‘straight eyebrow’ design of Hyundai’s Grandeur. The rear of BYD’s ‘Seal You’ is similar to the Porsche Cayenne. The interior of BYD’s sedan ‘Seal’ is similar to Tesla’s. The display on the center fascia, apart from the driver’s display, gives the impression of an Apple iPad mounted there. Forthing’s brand logo resembles Lamborghini’s, and the interior of the SUV ‘Friday’ is similar to Mercedes-Benz’s interior.

Lingpao Electric SUV C10 Front View
Photo by Oh Gyumin

BYD 'Seal U' Rear View
Photo by Oh Gyumin moh011@

Dongfengpengxing Brand Logo
Photo by Oh Gyumin moh011@

Dongfeng Fengxing SUV 'Friday' Interior
Photo by Oh Gyumin moh011@

Meanwhile, a company actively announcing its China market strategy locally in Germany is Volkswagen Group. It announced the implementation status of the ‘IN CHINA, FOR CHINA’ strategy. This strategy is a multi-billion euro investment plan to solidify its position in the Chinese electric vehicle market. Ralf Brandst?tter, a member of Volkswagen Group’s China board, said they are leveraging joint venture capabilities with Chinese car companies such as Shanghai Automotive Industry Corporation (SAIC) and focusing on developing the latest electric vehicles at the group’s largest research and development (R&D) facility outside Germany. He added, “We plan to launch next-generation battery cells in China and have partnered with Xiaopeng to introduce two mid-size models in 2026.”

Ralph Brandst?tter, Volkswagen Group China Board Member, is presenting the China market strategy.
[Photo by Oh Gyumin moh011@]