Germany hosted one of the world’s biggest auto shows this week — but in the heart of Europe’s car industry, it was Chinese electric vehicle (EV) makers that stole the spotlight.
At the IAA Mobility conference in Munich, companies like Xpeng, GAC and Leapmotor took center stage with massive displays, underscoring their ambitions to win share in Europe. The push comes at a time when Tesla’s dominance in the region has waned and European legacy automakers are racing to catch up in electrification.
Aggressive expansion plans
Xpeng CEO He Xiaopeng told CNBC the company plans to launch its mass-market Mona series in Europe in 2026. In China, the Mona starts at under $17,000, raising the stakes on price competition if brought to Europe.
Meanwhile, GAC is targeting rapid sales growth on the continent. GAC International president Wei Haigang said the company aims to sell about 3,000 cars in Europe this year and expand to at least 50,000 units by 2027. The automaker will introduce its Aion V and Aion UT models to European buyers.
Market share for Chinese car brands in Europe nearly doubled in the first half of 2025 compared with a year earlier, reaching just over 5%, according to Jato Dynamics.
Tech and gadgets in focus
Like Tesla, Chinese EV makers pitch themselves as tech-first companies. Their cars feature large touchscreens, smart assistants and in some cases, added luxuries.
GAC’s Aion V, for example, comes with a built-in refrigerator and massage seats — features meant to differentiate Chinese models from established European rivals.
Analysts say Chinese automakers benefit from affordability, battery technology and production scale, which strengthen their chances of success in Europe.
Europe’s carmakers push back
Volkswagen, BMW and Mercedes mounted their own show of force at the IAA, with sprawling stands and new EV models on display. Mercedes covered the venue’s front entrance with branding, while BMW unveiled its new iX3 built on a centralized “superbrain” computer architecture co-developed with Qualcomm.
Renault also revealed new EV offerings as Europe’s legacy firms try to keep pace.
But experts warn that incremental progress is not enough. “A commitment to legacy structures and incrementalism has slowed its ability to build and leverage a robust EV ecosystem, leaving it behind fast moving rivals,” said Tammy Madsen, professor at Santa Clara University.
While Europe’s carmakers lean on brand heritage and scale, Chinese EV players are pressing ahead aggressively — and the battle for Europe’s electric future is heating up fast.
