Struggling IAA amid challenging conditions: Focus on customer attraction
The IAA Mobility auto show has opened its doors in Munich, showcasing the latest trends and innovations in the automotive industry. Amidst the excitement, German car manufacturers are facing significant challenges, with substantial profit declines in the first half of the year compared to the previous year.
One of the reasons for the profit declines is the transition to electric mobility not proceeding as expected. German automakers, such as BMW and Mercedes-Benz, are responding with new electric models. BMW is showcasing the iX3, the first series model of the Neue Klasse, at the auto show, while Mercedes-Benz is focusing on an approximately one-meter-wide screen for its electric GLC. The range of the BMW iX3 has increased to 800 kilometers.
The Volkswagen Group is also making a strong showing, presenting four electric entry-level models from VW, Škoda, and Cupra. The ID.Polo, priced from just under €25,000, is one of them. The official world premiere of the ID.Polo will take place in May next year, with sales starting in the fall of 2026.
The auto show is also featuring new sensors and assistance systems, more efficient electronics, and sustainable materials. One of the technologies making waves is "by wire" technology, which sends commands as electrical signals. This technology, being showcased by automotive supplier Bosch, saves weight, provides flexibility in the interior, and enables quick and precise reactions. Cost-cutting measures and job cuts are being implemented at companies like Bosch, ZF, and Continental due to the challenges faced by the German automotive industry.
The auto show in Munich is attracting a global audience, with more Chinese companies than ever before. According to preliminary figures from the VDA, there are 116 exhibitors from the People's Republic. Among the Chinese companies at the auto show are electric car manufacturers BYD and Xpeng.
Visitors can explore the latest trends in the industry and examine new models on the exhibition grounds. The auto industry is positioning itself for the future with technologies like "by wire" steering and braking, software updates, and sustainable materials.
Federal Chancellor Friedrich Merz (CDU) is expected to attend the opening of the auto show, symbolising the government's support for the industry as it navigates these challenging times. The auto show will run until Friday.
