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IAA Mobility 2025: Volkswagen, BMW, Mercedes, BYD & XPeng Shine

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Key Takeaways

  • VWAGY, BMW, Mercedes, BYD & XPeng unveiled new EVs and advanced mobility tech.
  • Battery innovation and AI systems are driving rapid transformation in the auto industry.
  • BYD and XPeng highlight how Chinese players are expanding aggressively in Europe.

At IAA Mobility 2025, held in Munich, numerous auto companies from around the world showcased their latest innovations. The event highlighted how electrification and digitalization are driving the rapid transformation of the auto industry. Battery technology and EVs are advancing at an unprecedented pace.

German giants and ambitious Chinese challengersare trying to keep pace in the fast-changing electric mobility landscape. Among the many exhibitors, German giants like Volkswagen (VWAGY - Free Report) , BMW AG (BAMXF - Free Report) , Mercedes-Benz Group AG (MBGYY - Free Report) and Chinese EV makers like BYD Co Ltd (BYDDY - Free Report) , XPeng Inc. (XPEV - Free Report) stood out with their new models and technologies.

Volkswagen Accelerates Its Electric Journey

Volkswagen presented the ID. Polo and the ID. Cross. These well-known model names from its combustion-engine portfolio will now move into the electric space. The ID. Polo, based on the ID. 2all concept, will hit the market in 2026, alongside a sporty ID. Polo GTI. The ID. Cross, an all-electric compact SUV set to arrive by the end of 2026, also drew attention.

With this approach, Volkswagen aims to link its successful legacy to its electric future while offering buyers familiar names in a new form.

BMW Shines with the iX3

BMW took center stage with the global debut of the new iX3, the first Neue Klasse vehicle. The iX3 50 xDrive set a new benchmark for electric SUVs with a WLTP range of up to 805 km and charging power of 400 kW. The model also introduced the BMW Panoramic iDrive, designed to make driving more intuitive and connected.

Beyond iX3, BMW showcased its broader portfolio, including MINI, BMW M and BMW Motorrad, ensuring there was something for every fan. The iX3’s performance and design reflect BMW’s effort to combine driving pleasure with cutting-edge electric technology.

Mercedes-Benz Counters With GLC EV

Mercedes-Benz brought its new GLC EV, directly rivaling BMW’s iX3. The SUV features a 94-kWh battery, delivering up to 713 km of range under WLTP testing. It is loaded with digital luxuries, including the latest Superscreen setup and optional MBUX Hyperscreen. The integration of ChatGPT into the MBUX Virtual Assistant added a fresh layer of interactivity, showing how the brand is blending artificial intelligence with automotive design.

The new GLC EV builds on the success of the combustion-engine GLC while moving firmly into the electric era.

BYD Expands Its European Ambitions

China’s BYD debuted SEAL 6 DM-i Touring, its first-ever station wagon for Europe, alongside the sedan version of the SEAL 6 DM-i. Both models highlight BYD’s strength in plug-in hybrids, with electric ranges of up to 105 km and total ranges stretching beyond 1,300 km. The Touring version also stood out for its generous cargo space of more than 1,500 liters.

Beyond product displays, BYD made a strong case for its growing European presence. The. Executive Vice-President Stella Li announced that the company will build all-electric vehicles locally in Europe within three years. Its first European plant in Hungary will begin production this year, while another facility in Turkiye is set to follow in 2026. The Dolphin EV, the first mass-produced model from Hungary, will feature ultra-fast charging, delivering 400 km of range in just five minutes. All this reflects BYD’s efforts to establish itself firmly in Europe’s EV market.

BYD stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

XPeng Brings AI and Flying Cars

XPeng drew attention with its futuristic displays. The company debuted the Next P7 sedan in Europe, underlining its push into high-performance electric cars with strong AI-driven systems. Beyond cars, XPeng also showcased humanoid robots and flying vehicles, creating one of the most futuristic displays at the show. The company will open its first European R&D center in Munich this month.

This move will allow XPeng to develop technology closer to European customers and strengthen its role in shaping the future of e-mobility.

Last Word

The event was about more than just new cars. It highlighted the future of mobility, from smart AI systems to ultra-fast charging. The rivalry between established brands and new players will push electrification forward and transform transportation.

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