Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
IAA 2025 World’s largest mobility fair set to kick off in Germany
Kia's EV2 concept car / Courtesy of Kia
By Lee Min-hyung
Europe emerges as major battlefield for global carmakers
MUNICH — IAA 2025, the world’s most influential mobility exhibition, will kick off its six-day run Tuesday, bringing together global carmakers seeking deeper inroads into the highly lucrative European electric car market.
Under the theme of “It’s all about mobility,” participants in this year’s event will focus on promoting their technological prowess in diverse areas, such as electric vehicles (EVs), autonomous driving and advanced in-vehicle technologies.
The number and range of participants have widened for IAA 2025 compared to the previous two years. According to the event’s organizer, some 1,000 exhibitors from 39 countries will participate in this year’s fair, up from 750 in 2023.
They span from conventional carmakers, including Hyundai Motor, BMW, Mercedes-Benz and Volkswagen, to software firms such as IBM and Google. LG Electronics and Hyundai Mobis will also attend IAA 2025 to showcase their latest auto parts solutions and seek partnerships with more global carmakers.
Global auto makers will focus on promoting their vision for compact EVs in line with their growing demand in Europe.
A teaser image of Hyundai Motor's Concept THREE, the carmaker's smallest model in its IONIQ electric vehicle series / Courtesy of Hyundai Motor
Hyundai Motor and Kia will unveil their new compact electric concept cars during the exhibition. Hyundai Motor plans to showcase a concept model for its entry-level EV — the Concept THREE — for the first time during IAA 2025. The vehicle is the smallest model from the carmaker’s IONIQ EV brands. Kia is also scheduled to display its EV2 compact electric crossover.
Volkswagen, the undisputed leader in the European auto market, is set to unveil four new vehicles, including a prototype of its new entry-level electric hatchback — the ID. Polo.
Three representative German luxury carmakers — BMW, Mercedes-Benz and Audi — are also ready to showcase new electric cars and hype up their latest technological achievement in electrification.
Volkswagen's camouflaged ID. Polo electric hatchbacks / Courtesy of Volkswagen Korea
A group of around 100 Chinese carmakers, including BYD and XPENG, will also unveil new EVs tailored for Europe at IAA 2025.
The moves reflect the rapidly growing strategic importance of the European EV market.
According to market tracker JATO Dynamics, some 1.2 million EVs were sold in Europe in the first half of this year, up 25 percent from the previous year. This marks the first time the figure has surpassed the symbolic 1 million mark in only half a year.
This is not the case in most other regions, including North America, as EVs are still struggling to overcome barriers to mass adoption.
As the Donald Trump administration is set to abolish EV subsidies in the U.S. by the end of September, global carmakers are rushing to increase their market share in Europe to offset a possible sales fall in the world’s largest economy.
“Starting this year, major automakers have realigned their strategic focus onto Europe, as Trump displays outward pessimism on eco-friendly mobility even at a time when EVs are all about the current mobility industry,” an official from the auto industry said.
China is also another rapidly growing EV market along with Europe, but non-Chinese carmakers face a tough time expanding their market share there due to the ever-strengthening presence and unmatched price competitiveness of the country’s homegrown EV makers.