Failure to act decisively could lead to losses in the international electric vehicle competition

The International Motor Show (IAA MOBILITY) in Munich, set to take place on September 9, is gearing up for a significant event this year. The number of companies attending has seen a notable increase, particularly among car manufacturers, as the world moves towards a more sustainable future.

One of the highlights of this year's show will be BMW's debut of the iX3, the first car of the so-called "Neue Klasse". This electric vehicle (EV) is expected to have a range of 800 kilometres and charging speeds that outpace the Porsche Macan, making it a promising contender in the EV market.

The iX3's success, however, largely depends on its price. As battery technology advances and costs decrease, EVs could soon conquer rural areas, where their prices fall below those of combustion models. In fact, in China, BEVs accounted for more than a quarter of sales in the first quarter, 16% in Europe, and just 8% in the US, indicating starkly different speeds of transformation.

Norway, leading in Europe in terms of EV adoption, has already seen its market share of new BEV registrations reach 97% by July 2025. The phase-out of combustion engines in Norway is effectively complete, setting a precedent for other countries to follow.

CATL, the world market leader in batteries, has unveiled a model that can recharge roughly 500 kilometres of range in just five minutes. PwC's consulting arm Strategy& expects that by 2030, it will be standard to add about 400 kilometres of range in ten minutes for EVs.

While the shift to EVs presents opportunities, it also brings challenges. European car associations have warned the EU that the targets for phasing out combustion engines are overly ambitious. Manufacturers themselves are concerned about the slow pace of infrastructure expansion and high prices in Europe.

Despite these challenges, it is clearer than ever that those who hit the brakes on electromobility will lose out globally. The crisis facing German carmakers is currently severe, with profits dwindling, global market share at a low since 2005, and job losses across the industry.

At the IAA, most Chinese carmakers will present electric vehicles (EVs), which play a minor role in sales but are technologically advanced. Around 30 carmakers are expected to set up stands in Munich in 2025, which is a third more than two years ago. Companies such as BMW, Ducati, Hyundai, Mercedes, Mini, Opel, Polestar, and Volkswagen were represented predominantly presenting new EV models and innovations focused on climate-neutral and digital mobility.

As the world continues to transition towards a more sustainable future, events like the IAA MOBILITY in Munich serve as a platform for companies to showcase their EV innovations and pave the way for a cleaner, greener future.

Failure to act decisively could lead to losses in the international electric vehicle competition