German automakers should embrace mobility at IAA present – DW – 09/04/2025 | EUROtoday

Auto exhibits have lengthy been magnets for producers and most of the people in Germany. The first one displayed eight motor automobiles in Berlin in 1897. The exhibits expanded because the trade grew and extra individuals purchased vehicles.

In the early 2000s, the Frankfurt International Motor Show had grown to round 2,000 exhibitors and introduced in 1,000,000 guests.

But slowly, some producers opted to remain away, and people who stayed lowered their presence. Visitor numbers plummeted and corporations puzzled concerning the relevance — and expense — of such commerce exhibits.

Now, after rebranding and transferring to Munich in 2021, the International Mobility Show Germany (IAA Mobility) is once more set to open on September 9, 2025.

The occasion, which is organized by the German Association of the Automotive Industry (VDA), is cut up into two components. One for trade specialists, and one other with out of doors public occasions all through the town, together with check drives and new automobile displays.

Leaving the normal auto present behind

The days when customers went to auto exhibits, kicked the tires of various manufacturers and fortunately took residence baggage stuffed with brochures are over. Today, transportation is extra than a automobile within the driveway.

To stay related, these exhibits should nonetheless present shiny idea vehicles whereas addressing self-driving automobiles, synthetic intelligence and the shift away from inside combustion engines.

Instead of specializing in luxurious and horsepower, the IAA has opted for this wider perspective and brings collectively auto producers, software program builders, suppliers, and the makers of bikes, scooters or different micromobility automobiles.

It is an try to reply huge questions on sustainability, innovation, charging infrastructure, the necessity for broader public transport networks and shared mobility. It’s a tall order.

Can Germany sustain with mobility traits?

German producers are in a very weak place. The nation has shed round 51,500 automobile trade jobs prior to now yr, based on a report launched final week. That dip equals 6.7% of the sector’s whole workforce in Germany.

Production overcapacity, rising labor prices and falling income are behind a few of this drop in employment. At the identical time, the German auto trade should cope with 15% US tariffs. It can be seeing its profitable exports to China slide and its market share there shrink.

Exhibitors at this yr’s IAA embrace German producers like Audi, BMW, Mercedes, Porsche and VW, plus suppliers like Continental and Schaeffler.

“For several years now, the German automotive industry has been undergoing the most profound structural change in its history. This is particularly true of the transition to electric mobility,” stated Anita Wölfl, an knowledgeable in innovation and digital transformation on the ifo Institute in Munich.

As if the sector wanted one other wake-up name, simply days earlier than the occasion was set to open, it was introduced that producer Porsche could be compelled out of the necessary DAX index on the finish of September. This downgrade comes three years after the corporate cut up from VW, went public and was added to the DAX. Only BMW, Mercedes and Volkswagen now make the top-40 listing.

Still, German automobile producers and suppliers are extra resilient than is usually perceived, argues Wölfl. The nation is a frontrunner in inexperienced drive expertise patent functions and since 2021 has ranked third on the earth by way of new registrations of electrical automobiles (EVs), behind China and the US.

In the primary half of the yr, a file 864,000 electrical vehicles have been produced in Germany, based on the VDA trade group.

That means 40% of total home automobile manufacturing is now electrical, in comparison with 30% in the identical interval final yr. VDA calculates that 1.7 million electrical automobiles will roll off meeting traces by the top of the yr.

The competitors all coming collectively

In Munich, in what many within the trade hope is an enormous German comeback, BMW, Mercedes and VW are all anticipated to premier new automobiles that emphasize expertise and electrical mobility.

Since the present is on their residence turf, it’s apparent that “the German brands need to be present at the German car event,” stated Arthur Kipferler, a London-based associate and managing director of Berylls by AlixPartners, a worldwide consultancy that specializes within the automobility sector.

Nearly 280 German exhibitors are planning to attend. But the displays of the main manufacturers are anticipated to be “rather modest compared to what happened in Frankfurt before 2020,” Kipferler instructed DW.

Other exhibitors come from throughout Europe, Canada, the US, South Korea, Taiwan and Turkey.

China is properly represented with dozens of exhibitors. Many European producers see this as a worrying signal. Not solely are many of those Chinese manufacturers pushing out international competitors inside China, now they’re aggressively increasing with their electric-vehicle knowhow.

One huge title lacking from the occasion is Telsa. Even although the corporate has certainly one of its greatest manufacturing services close to Berlin, the corporate is thought for avoiding such exhibits.

The onerous street to an actual transformation

Whether they attend the exhibition or not, all producers and suppliers have a bumpy street forward.

Up till now, German manufacturers have stored producing inside combustion engine automobiles whereas additionally increasing EV manufacturing. But this twin manufacturing system shouldn’t be worthwhile in the long run since economies of scale can’t be achieved, argues Wölfl.

Maintaining concentrate on objectives already introduced is crucial. For Wölfl, the largest threat within the transition to electrical mobility is “the softening of CO2 limits and the repeated discussions about a possible reversal of the decision to phase out combustion engines,” she instructed DW.

For Arthur Kipferler, legacy manufacturers face the chance of merely not managing the transformation “to become smaller, leaner, more agile, and more digital and software-based businesses.”

Such a disruptive transition could have penalties for established producers and their funds, he thinks. Stagnating markets and new manufacturers claiming extra market share may imply the top of progress, which might be dangerous information for Germany

Edited by: Uwe Hessler