Munich Auto Show Opens with Chinese Exhibitors, EU Emissions Debate

The IAA Mobility automotive trade show in Munich has opened with a strong focus on electric vehicles (EVs) and a record presence of Chinese exhibitors, highlighting the intensifying competition between European and Chinese automakers. German Chancellor Friedrich Merz criticized the EU's planned 2035 ban on new combustion-engine vehicles, advocating for a technology-neutral approach to balance competitiveness with climate goals, amid concerns that strict climate policies could further strain Europe's struggling auto industry. European carmakers including BMW, Mercedes, Volkswagen, and Audi face multiple challenges such as declining profits, decreased sales in China, and costly U.S. tariffs, which Volkswagen CEO Oliver Blume noted are costing the firm billions of euros. In response, several European manufacturers, like Stellantis, are broadening their production beyond EVs to include other alternatives, acknowledging that EU carbon emissions targets for 2035 may be unattainable. Meanwhile, Chinese automakers are aggressively expanding their footprint in Europe, introducing more affordable EV models, intensifying the battle for market share at the show. Overall, the event underscores Europe's auto sector's efforts to confront competitive pressures from China while navigating regulatory and economic headwinds.