IAA Munich Auto Show: Chinese automakers and BBA face each other head-on, technical equality becomes the focus

IAA Munich Auto Show: Chinese automakers and BBA face each other head-on, technical equality becomes the focus

The 2023 IAA Munich International Auto Show officially opened on September 5. As the largest automobile industry event in Europe, this auto show attracted many car companies around the world to participate. Unlike previous years, Chinese automakers have become the absolute protagonists of this auto show, confronting the traditional German luxury brands BBA (BMW, Mercedes-Benz, Audi), and "technical equality" has become the core focus of competition between the two sides.

1. Chinese automakers have made a strong landing, and the European market has become a new battlefield

At this IAA Auto Show, the number of Chinese automakers participating in the exhibition hit a record high, and brands including BYD, Xiaopeng, Zero Racing, and Cialis all appeared with heavyweight models. Among them, BYD released its pure electric sedan "Seal" in Europe for the first time and announced that it will build a factory in Germany; Xiaopeng Motors showed off its latest SUV model G9, which is scheduled to enter the European market in 2024.

2. BBA counterattack: electrification transformation accelerates

Faced with the challenges of Chinese automakers, BBA's three German luxury brands have also demonstrated their latest achievements in the field of electrification. Mercedes-Benz has released the new CLA concept car with a range of up to 750 kilometers; BMW has launched the i Vision Dee concept car, focusing on digital interaction; Audi has focused on displaying the Q6 e-tron, equipped with a PPE pure electric platform.

3. Technical equality has become the focus of competition

Unlike previous auto shows, the core of competition in this year's IAA has shifted from "brand premium" to "technical equality". With its technical accumulation in batteries, intelligent driving, and Internet of Vehicles, Chinese automakers are narrowing the technological gap with BBA. For example, BYD's blade battery technology has reached the same level as CATL; Xiaopeng Motors' XNGP intelligent assisted driving system also surpasses Tesla FSD in some scenarios.

4. Changes in attitudes of European consumers

According to on-site survey data, European consumers' acceptance of Chinese electric vehicles has increased significantly. Price advantage (average 30% lower than BBA), rich configuration (standard L2 assisted driving) and battery life (generally above 500km) have become the three major selling points of Chinese models.

5. Industry impact and future prospects

This auto show marks a profound change in the global automobile industry structure: 1) For the first time, Chinese auto companies have formed equal competition with European luxury brands at the technical level; 2) Electroelectric transformation forces traditional auto companies to accelerate innovation; 3) The trend of "technical equality" will reshape the global automobile market value system. The industry predicts that by 2025, Chinese brands' share of European electric vehicle market is expected to increase from the current 8% to 15%.

As Chinese auto companies continue to increase their R&D investment (R&D expenditure increased by 40% year-on-year in 2022), and the advancement of European carbon neutrality policies, this technological revolution led by Chinese auto companies will continue to deepen. Whether BBA can maintain the traditional advantages of the luxury car market will depend on its transformation speed and technological breakthrough capabilities.