09:03 09-09-2025

IAA Mobility 2025 in Munich: Europe vs China, tariffs and sub-€25k EVs

At the IAA Mobility show in Munich, with SPEEDME.RU on the ground, the world’s biggest automakers rolled out new EVs alongside more attainable models as they wrestled with overlapping crises and mounting competition. The mood on the floor suggested this was as much about strategy as about premieres: the toughest headwinds are U.S. tariffs, rising costs, and the assertive advance of Chinese brands.

Volkswagen indicated that U.S. tariffs alone have cost the group several billion euros. Porsche, squeezed between those duties and softer demand in China, is unlikely to reach its 20% margin target. Stellantis made it clear it won’t limit itself to EVs, acknowledging the EU’s 2035 net-zero ambition as out of reach.

With EV prices still elevated, car giants are shifting focus to models under €25,000. China’s BYD confirmed plans to start local production in Europe within three years, while Leapmotor unveiled the new B05 hatchback, set to arrive in Europe in 2026. Turkish startup Togg showed the T10F sedan and the T10X crossover, both slated to go on sale first in Germany.

The 2025 Munich show became a straight head-to-head between Europe and China. For buyers, that’s encouraging: competition promises more affordable 2025 cars and a wider choice of electric models.