At the IAA, Chinese rivals are showcasing electric vehicles in every price level. German manufacturers are under a lot of strain, and 2023 may mark a historic turning point for the region's economy.
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| IAA Motor Show 2023 |
The Japanese arrived in the 1970s. The German manufacturers were intimidated by Toyota, Nissan, and Honda because of their effective factories and high costs. In the 1990s, the Koreans did the same. Small, luxurious vehicles helped Hyundai and Kia become household names. Tesla sold its first electric vehicle in Germany in 2008. The American company improved the electromobility of Volkswagen, Mercedes, and BMW.
then came the Chinese. Manufacturers including BYD, MG, and Nio will demonstrate their capabilities at the Munich auto show, now known as IAA Mobility. They are showcasing cutting-edge electric vehicles in all price ranges that were developed with European suppliers and built in China.
The history of the automobile demonstrates the benefits of competition for both business and the growth of one's personal ability to perform and create. Over the past 50 years, German automakers and their suppliers have become more adept at interacting with Asians and Tesla. In terms of engineering and quality, automobiles labelled "made in Germany" are still regarded as the gold standard. Still.
The timing of the Chinese advance is unfortunate. There is much discussion of the faults and vulnerabilities of the German people rather than their strengths. German hopelessness meets Chinese arrogance. In Munich, BMW, Mercedes, and Volkswagen will use every effort to debunk this perception.
However, their novelty act and drumming about sustainability won't let them forget the problems they're facing. An historic turning point for the German car industry may occur in 2023. It's not just about efficiency, cost, models, or drive kinds this time. Everything is at risk at once: weak supply networks, scarce raw resources, expensive technology, markets in jeopardy, geopolitical and industrial frameworks, and climate change.
The difficulties of the age of petrol and diesel appear insignificant in retrospect. Overall, even the robust German industry may find the new obligations to be too large. The "perfect storm" favours the emerging Chinese rivals indisputably. The battery, the most important component of the automobile of the future, is under their control. Their technological advantage and industrial production practises here appear unchallengeable. They were able to avoid the more than 100-year history of conventional automobile manufacture thanks to their expertise.
BYD ("Build Your Dreams") has achieved phenomenal success; the business, which is currently the leading manufacturer of batteries and mobile phone components, only produced its first electric vehicle in 2010. As the leading manufacturer of electric vehicles today, BYD has supplanted Volkswagen as the market leader in China.
The authoritarian government in Beijing has subsidized the automotive campaign of hundreds of domestic car manufacturers to the tune of billions. And it won't let up, because the temptation to break into such an important established Western industry is too great. Those in power have several levers in their hands. They not only promote domestic technology, they also hoard the necessary raw materials and reduce the scope for Western car manufacturers on the Chinese market.
We'll have to wait and see how much of an impact they have on the German market. The registration figures for BYD & Co. are still low. The German rivals are also retaliating. BMW unveiled its networked, all-electric "New Class" in front of the IAA on Saturday. Oliver Zipse, the CEO, criticised the end of petrol and diesel engines as well as electromobility at the same time more harshly than before.
What then matters? German automakers still don't appear to have the bravery to focus all their attention and speed on electromobility because they are afraid of losing the internal combustion engine.
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| Future BMW model IAA Mobility 2023 |
The author Henrik Mortsiefer is an editor at German newspaper Tagesspiegel.
Source: Tagesspiegel