The Munich Motor Show (IAA) is on its way to becoming a traditional meeting place for the German automotive industry. Inaugurated by German Chancellor Olaf Scholz, the second edition of the IAA takes place in a difficult economic context marked by the war in Ukraine, slowing growth in China and impressive inflation in the Eurozone.

Despite the increase in car sales in the European Union over the past twelve months, they remain more than 20% below 2019 levels, before the outbreak of the pandemic. The leading manufacturers are now facing strong Chinese competition, which threatens their dominant position in the burgeoning electric car market.

Are “traditional” developers threatened on their own land?

Of the IAA exhibitors, 41% are headquartered in China, and manufacturers like BYD and Leapmotor may well steal the show from European giants like Volkswagen, BMW and Mercedes. Conversely, Tesla, which has been absent from major auto shows for a decade, is returning to eclipse Europe’s biggest brands. Mathias Schmidt, an independent industry analyst in Germany, explains that Tesla “It’s slowly getting into the automotive sector, and a company that has never done marketing is starting to do it”.

German manufacturers, long proud of their domestic car industry, are facing growing fragility, but they will try to convince visitors by promoting their electric models to face Asian competition.

Faced with declining purchasing power due to inflation, demand for “affordable” electric models is increasing. Mercedes will take advantage of the show to unveil an electric car concept that previews the future electric CLA, while BMW will provide more details about its new line-up of cars based on the upcoming electric ‘Neue Klasse’ architecture, scheduled for 2025.

Already a competition show

Aside from the economic stakes, the environmental aspect is the show’s stated priority, but also draws criticism. While auto groups are reaping significant profits from rising prices, several environmental groups have announced “Activities of civil disobedience” disrupt the IAA.

AND “mobility revolution camp” will accommodate approximately 1,500 people in a park on the outskirts of Munich. Environmentalists accuse car manufacturers of “destroying the lives of countless people around the world” with their unstoppable growth. Demonstrations have already disrupted the previous edition of the show.

In total, about 700,000 visitors are expected at the Munich Motor Show, compared to 410,000 in 2021, split between the paid convention center and downtown, which will offer free entertainment around cars as well as bikes. Renamed IAA Mobility in 2021, when the traditional motor show moved from Frankfurt to Munich, the organizers emphasize, “mobility, sustainability and technology” not a car.

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