Chinese automakers have increased their presence at the 2025 IAA Mobility, one of the world's largest mobility trade fairs, held in Munich, Germany, as part of a broader push to expand in Europe despite looming tariffs on China-made electric vehicles (EVs).
The event, which opened Tuesday and runs through Sunday, has attracted around 750 exhibitors from over 30 countries and regions, according to organizers. China accounts for the largest share of foreign participants, with 116 companies taking part, including EV makers BYD, Xpeng, and Leapmotor, battery giant CATL, and tech firms DeepRoute.ai and Zhuoyu.
Auto manufacturer Leapmotor is showcasing its new Lafa 5 hatchback at both its city-center booth and the trade fair venue, aiming to boost sales in Europe. The company's founder also outlined a broader strategy for expanding its presence in the European market.
"Looking at the future of electrification, I believe it will follow two main paths: fully electric vehicles and hybrid vehicles. Alongside EVs, we also plan to increase our investment in hybrids so we can capture a solid share of the European market," said Zhu Jiangming, founder of Leapmotor.
Despite the European Commission's plan to impose tariffs of up to 36.3 percent on China-made EVs, the market share of Chinese automakers in Europe nearly doubled to 5.1 percent in the first half of this year.
BYD, which outperformed Tesla across Europe in July, said it's adapting to the trade environment by localizing supply chains with an eye on further growth on the continent.
"Tariffs are not a benefit for anybody, [they are] hurting European consumers. But for BYD as a global leader, as a technology leader, we have a global mindset. So we are already in the process to localize ourselves, so our Hungarian facility will start operating by the end of this year," said Stella Li, executive vice president of BYD.
Analysts noted a 40 percent increase in Chinese exhibitors at this year's IAA Mobility compared to 2023, viewing heightened brand visibility as a key strategy for market growth.
"BYD is sponsoring some of the major events we've seen in Europe. So I think brand recognition is definitely something the Chinese OEMs are working on," said Zhang Zihan, an EV research analyst of UK-based market research firm Rho Motion.
China's auto giants showcase expansion plans at Europe's premier mobility fair
China's auto giants showcase expansion plans at Europe's premier mobility fair
