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Global Regulations

Europe sinking in China car war

Last updated: September 10, 2025 7:00 am
Published: 6 months ago
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Watching mechanical jaws violently wrench the six-cylinder engine from a BMW 3 Series just hours after witnessing the brand’s electric future felt like a cruelly apt metaphor.

Away from the spotlight of Munich’s motor show, fuel and coolant lines snapped like blood vessels at a recycling facility where BMWs go to die.

I couldn’t tell which was more broken, the sports sedan’s heart, or mine.

But the future is electric.

There was no talk of petrol power during a presentation for BMW’s Neue Klasse, or new class, that represents a record investment by the brand.

This all-in, €10 billion ($17.8b) play starts with the BMW iX3, an electric Tesla Model Y rival that will offer 800 kilometres of range when it reaches Australia next year.

BMW chairman Oliver Zipse says the Neue Klasse “is much more than just one new car”.

“It represents a completely new model generation, a massive leap that will shape the entire brand for years to come,” he said.

EUROPE UNDER SIEGE

European car makers are fighting battles in every direction.

On the home front, manufacturers can’t agree whether to protest a 2035 ban on combustion engines in the EU.

Several German brands have lobbied against the plan, while Polestar chief executive Michael Lohscheller said “we are saying no, don’t move it, don’t make any compromises”.

To the west, America’s Trump, Tesla and tariffs threaten the viability of traditional car makers in the electric age.

And to the East, a looming tide of Chinese metal threatens to drown all but the biggest players.

BYD vice president Stella Li pumped up her brand’s rapid charging abilities and refuted suggestions patriotic customers might not warm to Chinese cars.

“No, I do not see that because the consumer just loves BYD cars,” she said.

“Every place we do test drives, we are always full of people … They love technology.

“I hope this competition can really bring everybody to be more innovative and creative and then we can bring fresh air and good technology to all the consumers.”

China’s Deepal and XPeng each had a significant presence in Munich.

The latter was right next door to Volkswagen, its flying car suspended mid-air like a wasp ready to sting the giant.

VW’s big news was a line of affordable compact EVs similar in size to the Volkswagen Polo.

Set to be priced on par with petrol cousins, the compact machines will wear the colours of multiple brands including VW, Cupra and Skoda.

Big brother Audi unveiled a new era of design anchored by the Concept C, a spiritual successor to the Audi TT.

On a stage full of next-gen electric metal, Porsche stuck to its guns with a new 911 Turbo, the most powerful version yet of its iconic coupe.

Speaking on behalf of the broader Volkswagen Group, Porsche chief executive Oliver Blume said the group “didn’t hold back” with a range of models “made in the face of major challenges”, citing “declining demand in Europe, innovation and price pressure in China, trade tensions, tightening global regulations, and a slower EV ramp up in Europe and in the US than expected”.

A NEW ERA

Over at Mercedes, an electric GLC rang in a new era of design for the brand – both inside and out.

And AMG showed off its record breaking Concept GT XX that forms the basis for an upcoming electric performance car.

Polestar didn’t buy space inside the show but displayed its new Polestar 5 in a pop-up down the road, a fitting image for a challenger brand struggling to elbow its way into Europe’s luxury clique.

The show itself was a fraction of what car makers used to show at the Frankfurt motor show, or what you might see at China’s Shanghai show today.

Which suggests that although Europe’s big motor show might be back, the industry has more than a few challenges on the road ahead.

Read more on News.com.au

This news is powered by News.com.au News.com.au

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