Munich Auto Show Highlights Europe-China Electric Vehicle Competition

The 2025 Munich Auto Show highlights the existential challenges facing Europe's automotive industry, particularly from the rapid rise of Chinese electric vehicle (EV) manufacturers. European carmakers such as BMW, Mercedes-Benz, and Volkswagen are unveiling new electric models and emphasizing advanced technology and design to defend their market share against 14 Chinese brands exhibiting at the show, outnumbering the 10 European marques. Chinese automakers have significantly expanded their presence in Europe, capturing a notable share of the market with cost-competitive EVs, especially in countries like Spain and the UK. Industry experts stress that the shift to electromobility and competition from China represent permanent structural changes rather than temporary issues, urging Europe to restore its long-term competitiveness. Despite economic stagnation and declining sales, European manufacturers are betting on innovation and legacy design strengths to counter the challenge posed by Chinese firms like BYD and MG. The show serves as a critical battleground as Europe seeks to maintain its automotive leadership amid these transformative pressures.