"Beyond Electrification to AI: Europe vs. China Face Off at IAA 2025"

Europe's Largest Mobility Exhibition Opens
Xpeng Declares "AI Defined Mobility" Development
CATL and Leapmotor Showcase Overwhelming Technological Prowess

Europe's largest mobility exhibition, 'IAA Mobility 2025', opened on September 8 (local time) in Munich, Germany. In the backyard of the world's largest electric vehicle market, a head-to-head competition unfolded between Europe's traditional powerhouse automakers and China's emerging automotive giants.

On the 8th (local time), many visitors gathered at the booth of Chinese automobile company Xpeng at the 'IAA Mobility 2025' exhibition held in Munich, Germany. Photo by Oh Hyungil

European automakers such as Volkswagen, BMW, and Mercedes-Benz unveiled a series of new strategic models to lead the next generation of electrification. In response, Chinese automakers showcased their technological prowess by introducing new electric vehicle models, as well as advancements in artificial intelligence (AI), humanoid robots, and urban air mobility (UAM).

According to the German Association of the Automotive Industry (VDA), around 70 Chinese companies, including automakers and battery manufacturers, participated in 2023. This year, that number increased by 40% to around 100 companies. Chinese companies took the initiative at the event.

On the morning of the exhibition, He Xiaopeng, chairman of Chinese automobile company Xpeng, appeared at the Xpeng booth and declared, "We are developing everything from cloud services and vehicles to computing power and hardware through a self-developed full-stack AI system," adding, "After electrification, we will focus on 'AI Defined Mobility.'"

On the 8th (local time), He Xiaopeng, chairman of Chinese automobile company Xpeng, gave a presentation at the "IAA Mobility 2025" exhibition held in Munich, Germany. Photo by Oh Hyunggil

Hundreds of foreign journalists and European automotive industry officials filled the booth and cheered loudly at Chairman He's presentation. The intense interest in Chinese automobiles entering the European market was palpable.

He Xiaopeng went on to say, "Based on this technology, we recently succeeded in fully autonomous driving from the factory to the delivery area," and introduced plans to launch a robotaxi business in China next year with Level 4 vehicles.

Additionally, Xpeng unveiled its high-performance model, the 'Next P7,' at the event. The P7 boasts a maximum output of 593 horsepower and a maximum torque of 695 N·m, accelerating from a standstill to 100 km/h in just 3.7 seconds.

On the 8th (local time), the booth of Chinese battery company Contemporary Amperex Technology Co. Limited (CATL) at the 'IAA Mobility 2025' exhibition held in Munich, Germany. Photo by Oh Hyungil

Xpeng also revealed its humanoid robot 'IRON.' When IRON, which is similar in size to an adult male, lifted objects, it was met with applause. IRON has begun trial operations at Xpeng's factory, and mass production and next-generation model development are planned to start next year. The company also displayed its UAM vehicle at the exhibition, drawing attention from visitors.

Chinese electric vehicle manufacturer Leapmotor added to its European EV lineup by unveiling its new hatchback model, the 'B05.' The B05 will be launched in China in the fourth quarter of this year and is scheduled for delivery in Europe starting in the second quarter of 2026, although pricing and detailed specifications were not disclosed. The Leapmotor booth also attracted significant attention from local industry officials.

Leapmotor CEO Zhu Jiangming described the B05 as "a sporty coupe aimed at younger consumers, to be released in six colors including Lightning Yellow and Modern Pink."

On the 8th (local time) at the 'IAA Mobility 2025' exhibition held in Munich, Germany, the booth of Chinese complete car manufacturer Leapmotor. Photo by Oh Hyungil

Chinese battery company Contemporary Amperex Technology Co. Limited (CATL) showcased a variety of products, including the sodium-ion battery 'NAXTRA,' considered a next-generation battery, as well as solid-state batteries. A CATL representative stated, "We hold over 43,000 patents and register an average of 16.8 new patents every day," adding, "Investing 5% of our annual revenue in research and development is the secret to our technological strength."

European automakers also unveiled new electrified models as they sought to defend their 'home ground.'

BMW made the world premiere of the 'BMW New iX3,' the first mass-production model of the 'Neue Klasse.' Neue Klasse represents BMW's core values and vision for the future in terms of technology, driving experience, and design.

Oliver Zipse, Chairman of BMW Group, emphasized, "Neue Klasse is BMW's most important future project and signifies a major leap in technology, driving experience, and design. The New iX3 is not just the next-generation model of our most successful all-electric BMW brand, but a symbol of the new era that BMW is opening."

On the 8th (local time) at the Mercedes-Benz booth of the 'IAA Mobility 2025' exhibition held in Munich, Germany. Photo by Oh Hyungil

Volkswagen made the world premiere of its entry-level all-electric SUV, the 'ID. Cross Concept.' This is Volkswagen's fourth compact electric concept car and a core model in its next-generation urban electric vehicle lineup. Starting with the mass-production model of the 'ID.2all,' called 'ID. Polo,' Volkswagen plans to launch three entry-level electric vehicles next year, including the high-performance 'ID. Polo GTI' and 'ID. Cross,' and to expand the lineup further with the mass-production model 'ID. Every1' in 2027.

Thomas Schafer, CEO of the Volkswagen brand, said, "The ID. Cross Concept is an iconic model that represents a new generation for Volkswagen. It will prove the brand's true evolution with a new design language, the democratization of advanced technologies previously reserved for higher-end models, and improved performance and quality."

Mercedes-Benz also unveiled its first all-electric SUV version of the global bestseller 'GLC,' called 'The All-New GLC with EQ Technology,' the day before. The top-tier model, 'GLC 400 4MATIC,' will be released next year, and four additional models in the lineup will be introduced in the future.