Europeans major on tech and design at Munich to slow China’s march

European car makers are betting that advanced technology and their long-standing leadership on design will give the cars displayed at next week’s Munich motor show an edge over formidable Chinese competition.

Munich is shaping up to be the biggest European motor show since the Covid pandemic for new model launches, as European car makers try to rejuvenate a sluggish market. 

However, the Chinese are also at the event in force as they look to increase an already booming market share.

No fewer than 14 Chinese car makers will exhibit at the Munich event, starting on 8 September, compared with 10 European brands, according to data from market researcher Inovev.

Korea's Hyundai and Kia are returning to the event, but the Japanese are absent. Stellantis is represented by Opel/Vauxhall and affiliated Chinese brand Leapmotor.

“This year, the event seems to be primarily a Sino-German battle for supremacy in the electric vehicle arena,” said Jamel Taganza, vice-president at Inovev.

According to Inovev's data, 23 new model launches are electric, three plug-in hybrid and two hybrid. 

The big launches are all on the German side, with BMW premiering its Neue Klasse platform with the new iX3 SUV and Mercedes-Benz unveiling the new electric GLC EQ, debuting the new MB:EA platform. 

Both SUVs are going big on technology that they hope can match or beat equivalent Chinese developments, including 800V platforms for rapid charging and a software-first approach to electronics and digital information. 

For example, the GLC EQ has the largest screen ever fitted to a Mercedes, at 39in wide, while BMW claims an EV range of nearly 500 miles.

The German premium brands are largely insulated from the Chinese in Europe at least, where the competition so far has mainly been hitting the volume end of the market.

That competition has been hotting up in recent months, with the share for Chinese car makers in Europe hitting 5.1% in August, according to figures from the bank UBS.

The rises of MG, BYD and Chery’s Omoda and Jaecoo brands have had big impacts in Spain, where Chinese brands grabbed a massive 12% share in August, and the UK, where the share stood at 7.4%.

“The growing share of Chinese OEMs in Europe is particularly negative for Stellantis and Renault,” UBS bank analyst Patrick Hummel said in a note to investors.