Munich IAA Mobility 2025 revealed the European transformation in the automotive industry with daring designs of electric vehicles and fresh design ideologies. The German makers took the center stage of the show with designs that were focused on heritage, Chinese brands focused on value propositions, and Koreans focused on contemporary designs. The event witnessed more than half a million visitors with 750 exhibitors representing 37 countries, and showcased how software and design are transforming the mobility scene.
German automakers embrace heritage-inspired design evolution
BMW, Mercedes-Benz, Volkswagen, and Porsche paired BEV headlines with efficient hybrid propositions at IAA 2025, according to Frost & Sullivan. BMW’s Neue Klasse platform deliberately referenced the brand’s 1960s transformation, featuring illuminated kidneys replacing chrome designs. The new BMW iX3 conveys this visual signal of a new generation.
Mercedes-Benz introduced a new grille element harking back to past designs, setting out with their new but heritage-inspired approach. “That is going to sit on the front of the GLC and other vehicles going forward, making a much stronger statement about being a vehicle that is upper premium,” Car Design Research director Sam Livingstone told Autovista24.
Audi reveals concept showcasing simplified design philosophy
Audi brought its Concept C to Munich, a two-seater electric hardtop convertible displaying the carmaker’s new design philosophy. “We have worked collaboratively within the design team initially to try to understand what the values and elements are that make an Audi an Audi. What is the DNA? That is why we looked at our heritage to move forward,” Audi chief creative officer Massimo Frascella explained. The model previews a production car slated for release in 2026.
Affordable EVs enter the mainstream with European Chinese offerings
IAA 2025 made “entry EV” tangible with the Volkswagen ID.Polo, CUPRA Raval, and ID.CROSS concept signposting a €20,000–€30,000 band from 2026. Škoda Vision O/Epiq pulled estate and small-SUV formats into the value discussion. Chinese brands pushed on value and technology propositions.
Leapmotor took shortcuts to enter the European market with Stellantis JV, positioning B05 hatch and B10 SUV to fight in the price range between 25 and 30k with ID.3/MG4. BYD expanded the small line-up and redefined the compact line-up in terms of battery range to charge time, with 1,000 kW battery-buffered hubs and fleets being co-invested in and showcased with charging point demonstrations.
Software becomes the central vehicle architecture, defining the system
Software became the core vehicle platform, and virtualised ECUs and cloud simulation and hardware-agnostic deployments were superimposed on zonal E/E and central compute. In the case of partner SOPs, NVIDIA encircled DRIVE/DriveOS with a cloud-to-car platform that was assessed regarding safety. With Snapdragon Ride Pilot with iX3, Qualcomm collaborated with BMW on the Snapdragon Ride Pilot, which includes a co-developed AD/ADAS stack certified in 60+ countries with an opportunity to deliver regional releases via OTA.
Chinese brands target European expansion beyond traditional OEMs
Chinese mobility players pressed their advantage in Europe, offering everything from fast charging and Level 4 autonomy to software and ADAS solutions. With US tariffs constraining North America, Europe became the proving ground for Chinese scale, software cadence, and cost structure.
“I think most of the Chinese brands do not have sufficient distinction for them to be able to actually enter this new market, in Europe,” commented Livingstone. However, the reason behind the apparent lack of distinguishability may highlight cultural differences between regions and their respective automotive markets.
IAA Mobility 2025 was a realistic re-arrangement of the automotive sector, striking a compromise between the past and future as Chinese competition is met by European brands. The exhibition showed that design philosophy, software integration, and charging infrastructure are emerging as important differentiators. Although the industry is also changing to execution-oriented strategies, platform decisions and alliances will define market winners among the new mobility ecosystem.