The IAA Munich 2025 trade show revealed a fascinating industry contrast as Chinese manufacturers made aggressive moves to capture the European market, while German brands reinforced consumer loyalty with comfort-focused messaging. Mercedes-Benz's "Welcome Home" tagline embodied the German approach, creating an emotional connection with drivers, while Telenor IoT's unveiling of AI-powered automotive connectivity solutions represented the next generation of automotive connectivity technology.

Key Takeaways

• IAA Munich 2025 broke records with over 500,000 visitors and 750 exhibitors from 73 countries

• Chinese manufacturers formed the largest foreign exhibitor contingent, showcasing EVs and autonomous technologies. BYD unveiled the SEAL 6 DM-i TOURING, while XPENG showed the European premiere of the Next P7, and Leapmotor celebrates the world premiere of the B05 and the European premiere of the B10

• German brands led by Mercedes focused on emotional consumer connections rather than trade audiences

• Mercedes unveiled the new GLC with EQ Technology featuring the 39.1-inch MBUX HYPERSCREEN, while BMW launched its iX3 Neue Classe as the first in its Neue Classe EV platform family that boasts a range of up to 800km, and Polestar showed their new Polestar 5.

• In Automotive IoT, Telenor's new IoT Drive solution integrates AI models for predictive analytics with enhanced vehicle communication

Record-Breaking IAA Munich 2025 Showcases Global Automotive Evolution

The IAA Mobility 2025 in Munich cemented its status as a premier automotive showcase, attracting over 500,000 visitors and nearly 750 exhibitors from 73 countries. This massive turnout represented a significant increase from the 2023 event, highlighting the growing importance of this gathering in the global automotive calendar.

The international character of the event was unmistakable, with 57% of exhibitors coming from outside Germany. The show featured more than 350 world premieres and new releases, a 17% increase compared to 2023. This global representation attracted approximately 3,700 journalists from 70 countries, resulting in a 10% increase in online reporting compared to the previous show.

Chinese OEMs Dominate the Trade Scene with Ambitious European Push

Chinese automotive companies formed the largest contingent of foreign exhibitors at IAA 2025, making their European ambitions clear. Their displays featured cutting-edge Electric Vehicles (EVs), autonomous driving technologies, and smart mobility platforms, all designed to appeal to the trade audience and industry professionals. BYD, Changan, Leap Motor, GAC and Dongfeng all had strong presence in IAA 2025.

The strategic showcase highlighted the growing competition between Chinese and German manufacturers in the next-generation mobility space. Chinese OEMs also demonstrated their expanding partnership networks with European suppliers, a move clearly aimed at strengthening their market position and addressing concerns about supply chain reliability.

"Welcome Home": German Brands Focus on Consumer Connection

In stark contrast to the trade-focused Chinese displays, German manufacturers led by Mercedes-Benz took a decidedly consumer-centric approach. Mercedes-Benz's "Welcome Home" tagline perfectly encapsulated this strategy, emphasizing emotional connection, comfort, safety, and familiarity inside their vehicles.

This approach reflected a deliberate choice to reinforce brand loyalty among existing customers rather than solely targeting industry professionals. German OEMs leveraged consumer insights from global markets to influence their new product designs, creating vehicles that resonated with drivers on an emotional level rather than simply highlighting technical specifications.

Mercedes Unveils All-New GLC with EQ Technology as Star Attraction

The highlight of Mercedes-Benz's presentation was the launch of the all-new GLC with EQ Technology, showcasing the brand's commitment to electric-first manufacturing. The vehicle boasts impressive technical specifications, including energy consumption of 14.9–18.8 kWh/100 km (provisional, with zero CO₂ emissions).

The GLC's most eye-catching feature is the massive 39.1-inch MBUX HYPERSCREEN, currently the largest in-car screen on the market. Practical capabilities weren't overlooked either, with the vehicle offering a substantial 2.4-tonne towing capacity. The premium audio system features Dolby Atmos sound delivered through 17 speakers, while the AI-driven MB.OS system provides seamless ambient customization.

The BMW iX3 Neue Klasse made its global debut at IAA Mobility 2025 in Munich, marking a major milestone for the brand as its first fully electric vehicle built on the all-new Neue Klasse platform. With bold new design language, sixth-generation eDrive technology, and the BMW Panoramic iDrive system, the iX3 represents a leap not just in performance but overall vehicle architecture. Its specs—a WLTP range of up to 805km, 400kW fast charging, and 345kW twin motor drivetrain—set fresh benchmarks for electric SUVs. BMW’s Masterclasses and interactive displays at the event showcased features like the panoramic digital cockpit, sustainable materials, and advanced connectivity.

The “big deal” is that the iX3 is the first in a family of nearly 40 new models set to transform BMW’s lineup with purpose-built electric platforms, new battery tech, and digital-first interiors. Next up is the Neue Classe i3. The 800-volt architecture, bidirectional charging, Level 3 automation readiness, and a dramatic design shift signal BMW’s holistic approach to electric mobility. The Neue Klasse is not just a new car—it’s BMW’s template for future innovation, sustainability, and driver-focused technology, promising to influence all BMW models in the years ahead regardless of drive type.

Telenor IoT Unveils Game-Changing Automotive Connectivity Solution

Amid the vehicle launches, Telenor IoT unveiled its groundbreaking IoT Drive solution, integrating advanced AI models for next-generation automotive connectivity. This technology provides real-time data management and enhanced AI-based analytics powering communication operations and predictive troubleshooting.

The AI models powering IoT Drive enable several key features that represent the future of connected vehicles:

• Predictive diagnostics that can identify potential issues before they cause network issues for vehicles

• Advanced security features to protect against digital threats

• AI-based connectivity profile management to optimize the customer experience for drivers and OEMs

This launch signals a fundamental shift toward deeper integration of AI and IoT in automotive platforms, setting new standards for how vehicles communicate with service providers, infrastructure, and other vehicles.

Record-Breaking Test Drives and Autonomous Vehicle Interest

Practical experience remained a key component of the IAA experience, with over 12,000 test drives conducted during the event – a 27% increase from the previous IAA. This hands-on approach resonated with attendees, as more than 50% of visitors expressed interest in purchasing an autonomous vehicle.

The event's educational component was equally impressive, with more than 21,000 people attending the IAA Conference. The conference featured 200 sessions with 550 speakers from over 300 companies, covering topics ranging from autonomous driving technology to sustainable manufacturing practices.

Future of Mobility: Climate Concerns and Industry Direction

Climate concerns took center stage at IAA 2025, with the event emphasizing climate-neutral and digital mobility solutions. Environmental protests outside the venue highlighted ongoing debates around sustainability and automotive industry priorities, serving as a reminder of the challenges facing manufacturers.

European policy developments regarding the phase-out of combustion engines were a frequent topic of discussion among industry leaders. Despite these challenges, the event's success has secured Munich as the host of future IAA Mobility shows through 2031, ensuring continuity for this important industry gathering. The re-launch of VW AG's Scout brand as a EV in the US embodied this trend, while Porsche's e-fuel initiative uses synthetic fuel developed by Porsche which uses renewable energy, water, and captured CO₂, aiming to make traditional combustion engine vehicles nearly carbon-neutral without requiring modifications to existing engines.

International Audience Reflects Global Industry Transformation

The international character of IAA 2025 was evident in its visitor demographics, with 24% of attendees coming from outside Germany. Significant numbers traveled from Great Britain, Austria, China, and Italy to witness the latest automotive innovations.

This global representation extended to exhibitors as well, with the largest international contingents coming from China, South Korea, Austria, Italy, and the USA. The event showcased both global collaboration and competition in automotive innovation, highlighting how the industry is transcending national boundaries in the pursuit of next-generation mobility solutions.

Sources:
iaa-mobility.com - IAA MOBILITY 2025: Innovation Performance Munich Mobility Festival
themunicheye.com - IAA Mobility 2025: Half Million Visitors
chinadaily.com.cn - Chinese OEMs at IAA Munich 2025