The 2025 IAA Mobility show opened September 9 amid escalating competition between German and Chinese automakers in electric vehicles. Mercedes-Benz CTO Markus Schaefer said the company doesn’t fear Chinese rivals, but is cutting costs amid price wars. BMW’s sales chief noted pressure from fierce discounting in China ahead of the new iX3 launch in 2026. Chinese manufacturers including BYD, Xpeng, and Leapmotor showcased new models as they accelerate European expansion. Chinese brands reached 9.9% of Europe’s EV sales in July, with overall market share exceeding 5% for three consecutive months. China’s H1 passenger car sales (10.9 million) far outpaced Europe’s (6.8 million).