Auto shows have long been magnets for manufacturers and the general public in Germany. The first one displayed eight motor vehicles in Berlin in 1897. The shows expanded as the industry grew and more people bought cars.
In the early 2000s, the Frankfurt International Motor Show had grown to around 2,000 exhibitors and brought in a million visitors.
But slowly, some manufacturers opted to stay away, and those who stayed reduced their presence. Visitor numbers plummeted and companies wondered about the relevance — and expense — of such trade shows.
Mobility comes in many forms. Maybe that is why the organizers have given this year’s IAA in Munich the slogan ‘It’s All About Mobility’Image: Sven Hoppe/dpa/picture alliance
Now, after rebranding and moving to Munich in 2021, the International Mobility Show Germany (IAA Mobility) is again set to open on September 9, 2025.
The event, which is organized by the German Association of the Automotive Industry (VDA), is split into two parts. One for industry specialists, and another with outdoor public events throughout the city, including test drives and new vehicle presentations.
Leaving the traditional auto show behind
The days when consumers went to auto shows, kicked the tires of different brands and happily took home bags full of brochures are over. Today, transportation is more than a car in the driveway.
To remain relevant, these shows must still show shiny concept cars while addressing self-driving vehicles, artificial intelligence and the shift away from internal combustion engines.
In the past, climate activists protested at IAA events complaining they represent car-centric solutions instead of more sustainable alternativesImage: Angelika Warmuth/REUTERS
Instead of focusing on luxury and horsepower, the IAA has opted for this wider perspective and brings together auto manufacturers, software developers, suppliers, and the makers of bikes, scooters or other micromobility vehicles.
It is an attempt to answer big questions about sustainability, innovation, charging infrastructure, the need for broader public transport networks and shared mobility. It’s a tall order.
Can Germany keep up with mobility trends?
German manufacturers are in a particularly vulnerable position. The country has shed around 51,500 car industry jobs in the past year, according to a report released last week. That dip equals 6.7% of the sector’s total workforce in Germany.
Production overcapacity, rising labor costs and falling profits are behind some of this drop in employment. At the same time, the German auto industry must deal with 15% US tariffs. It is also seeing its lucrative exports to China slide and its market share there shrink.
Exhibitors at this year’s IAA include German manufacturers like Audi, BMW, Mercedes, Porsche and VW, plus suppliers like Continental and Schaeffler.
A number of new vehicles will be presented at IAA in Munich, like Mercedes’ AMG GT XX concept car, in the hopes of attracting curious visitorsImage: Mercedes-Benz AG
“For several years now, the German automotive industry has been undergoing the most profound structural change in its history. This is particularly true of the transition to electric mobility,” said Anita Wölfl, an expert in innovation and digital transformation at the ifo Institute in Munich.
As if the sector needed another wake-up call, just days before the event was set to open, it was announced that manufacturer Porsche would be forced out of the important DAX index at the end of September. This downgrade comes three years after the company split from VW, went public and was added to the DAX. Only BMW and Mercedes now make the top-40 list.
Still, German car producers and suppliers are more resilient than is often perceived, argues Wölfl. The country is a leader in green drive technology patent applications and since 2021 has ranked third in the world in terms of new registrations of electric vehicles (EVs), behind China and the US.
In the first half of the year, a record 864,000 electric cars were produced in Germany, according to the VDA industry group.
That means 40% of overall domestic car production is now electric, compared to 30% in the same period last year. VDA calculates that 1.7 million electric vehicles will roll off assembly lines by the end of the year.
The competition all coming together
In Munich, in what many in the industry hope is a big German comeback, BMW, Mercedes and VW are all expected to premier new vehicles that emphasize technology and electric mobility.
Since the show is on their home turf, it is obvious that “the German brands need to be present at the German car event,” said Arthur Kipferler, a London-based partner and managing director of Berylls by AlixPartners, a global consultancy that specializes in the automobility sector.
Nearly 280 German exhibitors are planning to attend. But the presentations of the major brands are expected to be “rather modest compared to what happened in Frankfurt before 2020,” Kipferler told DW.
Other exhibitors come from across Europe, Canada, the US, South Korea, Taiwan and Turkey.
What will mobility look like in the future?
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China is well represented with dozens of exhibitors. Many European manufacturers see this as a worrying sign. Not only are many of these Chinese brands pushing out foreign competition within China, now they are aggressively expanding with their electric-vehicle knowhow.
One big name missing from the event is Telsa. Even though the company has one of its biggest production facilities near Berlin, the company is known for avoiding such shows.
The hard road to a real transformation
Whether they attend the exhibition or not, all manufacturers and suppliers have a bumpy road ahead.
Up until now, German brands have kept producing internal combustion engine vehicles while also expanding EV production. But this dual production system is not worthwhile in the long term since economies of scale cannot be achieved, argues Wölfl.
Maintaining focus on goals already announced is essential. For Wölfl, the biggest risk in the transition to electric mobility is “the softening of CO2 limits and the repeated discussions about a possible reversal of the decision to phase out combustion engines,” she told DW.
For Arthur Kipferler, legacy brands face the risk of simply not managing the transformation “to become smaller, leaner, more agile, and more digital and software-based businesses.”
Such a disruptive transition will have consequences for established manufacturers and their finances, he thinks. Stagnating markets and new brands claiming more market share could mean the end of growth, which could be bad news for Germany
Edited by: Uwe Hessler
