This year's Munich motor show showcased some impressive concepts from Mercedes-Benz and BMW, but a closer look reveals that "all that glitters is not gold." While the Concept CLA Class from Mercedes and the Vision Neue Klasse from BMW offer glimpses into their future electric models, car buyers and investors will have to wait until 2025 for these sedans to hit the market. Volkswagen also disappointed with a lack of products that will make a significant impact on the EV market in the near future.
Although VW introduced a new electric model, the ID.7, at the show, it had already made appearances earlier this year, making it less exciting for attendees. Additionally, VW's concepts were nothing new - the ID.2all, previewing a budget-friendly car, was unveiled in March, and the ID. GTI is essentially the same vehicle with a body kit. In contrast to the buzz created by Mercedes and BMW's CEOs, VW's CEO, Oliver Blume, failed to generate excitement with his presentation.
This is not an ideal time for German automakers to lag behind. Chinese brand BYD is pulling ahead as China's top EV brand and plans to announce the location of its first European factory soon. Tesla, with its revamped Model 3 sedan, is continuously extending its global EV lead and targeting Mercedes and BMW buyers with aggressive price cuts on its higher-end models.
Mercedes CEO Ola Källenius dismissed concerns about competition, claiming that Mercedes models are dependable and reliable. However, even Mercedes has faced pricing pressure, resorting to significant price cuts on its EQ range due to intense competition in China. The Munich motor show reveals that international competition is posing a challenge to traditional European automakers, both on and off the show floor.
Spiros Fotinos, the Europe chief of Zeekr, an EV brand owned by China's Geely, emphasized the opportunity for brands that can offer a compelling value proposition to European consumers looking to switch to EVs. The historical loyalty to traditional European brands is diminishing, and consumers are now open to exploring alternatives. The show's takeaway is clear - the competition is fierce, and automakers must adapt to the changing landscape if they want to remain competitive in the EV market.