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European brands put their best foot forward at the annual IAA motor show in Munich this week, presenting redesigned models and cars that feature hybrid and electric powertrains. But Asian brands – particularly those from China – were also present in force, showcasing their knowhow when it comes to affordable electric mobility.

The annual IAA mobility trade fair has for decades showcased automotive innovation and new models. Held in Munich since 2021 (it was previously hosted in Berlin and Frankfurt), this year’s edition brings together 748 exhibitors from 37 countries and focuses on mobility of the future. Brands from around the world – particularly from Germany and China – focused on presenting new hybrid and electric models, seeking to capitalise on increased market interest.

European brands stepping up electro-mobility efforts

After a disappointing 2024, the electric market has seen a rebound in 2025, and European carmakers are shifting up a gear. Many of them this week presented new electric or hybrid vehicles at the German auto show.

According to Opel CEO Florian Huettl, the first eight months of the year has seen “significant growth” in battery electric vehicle sales, with the market up by 39%. “The move to electro-mobility is growing, especially here in Germany,” he stated. But there is also “strong and growing customer demand for hybrid models,” Huettl added, highlighting the carmaker’s commitment to a “flexible multi-energy strategy” during a press conference at the Munich auto show on Monday to present the world premiere of Opel’s fully electric Mokka GSE.

Shaped by Opel’s motorsport heritage, “the new Mokka GSE takes everything we learned in rally and brings it to the road,” said Rebecca Reinermann, vice president marketing. “The battery, the electric motor, the impressive torque and impressive power are all shared between the rally and the street versions. The result: Opel’s fastest electric production car ever built.” The sleek-looking crossover SUV – painted grey and black with pops of bright yellow in the brake calipers and the stitching on the seats – has a top speed of 200km/hr, goes from 0 to 100km/hr in 5.9 seconds and a motor of 207kW (281hp). In Germany, the car can be purchased for €47,300 or leased from €399 per month.

Germany’s BMW also presented its iX3, the first car of its “Neue Klasse” (or “new class”) era. “With the Neue Klasse, we are taking very big steps in technology,” said Adrian van Hooydonk, head of BMW Group Design. “The BMW iX3 has a much bigger range, helped by a very clean shape with excellent aerodynamics. In the interior, you will find a new display concept that allowed us to clean up the dashboards and completely redefine the driving experience.” The “panoramic vision” projects at the bottom of the windscreen; the centre console is flattened out; and the passenger compartment and trunk are spacious. Looking at the exterior of the new BMW, the front end has been drastically reinterpreted, with the grill nearly disappearing and becoming very minimalistic. Chrome has been replaced with light, said van Hooydonk, with the new light signature aiming to make the new iX3 “very recognisable.”

The all-electric SUV “offers a range of more than 800km” and “peak charging power is up to 400 kilowatts,” said Oliver Zipse, chairman of the board of management of BMW. “In just 10 minutes, the iX3 charges enough to drive more than 370km.” But all this comes with a cost, of course: prices start at €68,900. Sales are expected to start this year, with deliveries in 2026.

The German stalwart Mercedes-Benz presented its all-new electric GLC 400 4MATIC with EQ Technology in Munich; the SUV features a panoramic roof, a range of up to 713 km, and an “AI-driven supercomputer” – the Mercedes-Benz Operating System (MB.OS) – that controls all aspects of the vehicle. Keep an eye open for the price (which has not yet been announced), as well as for the miniature three-pointed logos that appear in the headlights and brake lights.

Over at the Volkswagen Group, electro-mobility is also a priority, with Porsche presenting a wireless, inductive charging solution at the Munich summit. Like wireless charging for a smartphone, the idea is that users will install the floor plate, then simply park their vehicle over the plate in order to charge it. Porsche’s new electric Cayenne will be the first model where customers can order the wireless charging option. The Munich show also saw the debut of Audi’s new Q3 Sportback e-hybrid 200 kW, a plug-in hybrid SUV that offers an electric range of up to 118km, as well as the presentation of the Volkswagen ID.EVERY1 concept car, which aims to be an “electric €20,000 Volkswagen from Europe for Europe,” according to the company. The production version is expected to be launched in 2027. And finally, also part of the Volkswagen Group, Škoda on Monday presented its Vision O concept car, which features a minimalist design and optimised aerodynamics for its estate segment.

Strong Asian presence

Europe has been hard at work when it comes to electro-mobility, but will need to continue to step up its game in order to compete with Asian – and particularly Chinese – carmakers and their focus on affordable electric vehicles.

Chinese brands – such as BYD, Leapmotor, Xpeng, GAC, Dongfeng or Changan – were present with large stands at the Munich show. Some played the luxury angle: Changan, for instance, showcased “AVATR,” its premium electric vehicle brand. The Changan Deepal S07, an electric vehicle SUV that offers up to 475km of range, starts at €44,990.

Leapmotor, on the other hand, focused more on affordability during the world premiere of its electric B10, marking its entrance to the C-segment. Sleek and modern with plenty of legspace, the new SUV is 4.515 metres long, 1.885 metres wide, and 1.655 metres tall. The interior features a large touchscreen, echoing a Tesla cockpit. And the price? It starts at €29,900. “We offer a better price. That’s the most important thing,” Leapmotor rep Dixin Wu told ACL at the Munich summit, when asked what set the B10 apart from other vehicles on the market. “The concept is to bring technology to everybody.”

Continuing with the electro-mobility theme, South Korea’s Hyundai on Tuesday unveiled the futuristic Concept Three, its first compact electric vehicle under the IONIQ sub-brand, which aims to complement its existing midsize and large EV models.

A delegation of companies from Taiwan was also on hand at the Munich summit to showcase their technological innovations, many of which focus on electrification. These include modular electric vehicle components like chargers that can be customised to specific requirements (Greatenergy), to smart keys (Inventec), automotive radar (RoyalTek), metal casting solutions for EV components (Teamsworld Innovation), dash cams (Mitac Digital Technology), self-cleaning camera solutions (HPB Optoelectronics), and the development of hardware, software and system integration for electric vehicles (Viettron Technology).

Tech for the future

In the spirit of “mobility for tomorrow,” the IAA motor show featured startups that are developing technology for the automotive sector of the future. Many of them are integrating AI into their solutions, whether that’s for the optimisation of energy consumption (Embedl, from Sweden), object detection for autonomous driving (FiveD, based in Erlangen, Germany), support for production processes (Germany’s Manex AI), or for the maintenance and service of vehicles (Sensigo, based in Silicon Valley). Sustainability and circularity is also a key theme for electro-mobility, as evidenced by Circunomics’ focus on recycling batteries.

One startup that was especially eyecatching was Hyperdrives, a Munich-based engineering company that has developed a novel cooling technology for electric motors. “We have a cooling technique where we use the copper windings inside the motor – so that one part where the electricity flows, we also use it to cool the motor. So our cooling is in direct contact with the one component in the motor that actually generates the heat. And this is where you want to cool,” explained CEO and co-founder Robin Renz. “We have very small, hollow channels in the copper winding, and this is where we push our cooling fluid through… By doing this, we can push through more current, more electricity through the motor, and extract much more power.” This allows motors to be more compact and more efficient.

“The innovation has already attracted the interest of leading automobile manufacturers worldwide and gives the German company a strong position in competition with Asian suppliers,” said the jury that selected the startup.

Hyperdrives on 1 September closed an oversubscribed €3 million pre-seed fundraising round, which aims to help the company prepare its manufacturing processes for industrial-scale rollout. It’s a boost for the future of electro-mobility and turbo-charges European competitiveness in the sector.