Advanced electrification to take center stage at IAA 2025

Hyundai Motor CEO Jose Munoz introduces the IONIQ 9 SUV during AutoMobility LA at the Los Angeles Auto Show, Nov. 21, 2024. AP-Yonhap

Global automakers are ready to present their latest achievements in electrification by showcasing the newest electric models and promoting updated mobility strategies at the world’s most influential auto fair in Germany.

The biennial IAA Mobility 2025 is set to start its six-day run on Sept. 9 in the German capital of Munich. Participants will focus on hyping their technological developments in electric vehicles (EVs) during the exhibition.

IAA is gaining increasing strategic importance as boundaries between the auto and tech sectors blur, with carmakers and global IT firms seeking partnerships with each other at the exhibit, just like the annual CES tech fair.

Reflecting on the trend, Hyundai Motor has decided to take part in the upcoming event after a four-year hiatus.

The carmaker will unveil a concept model for its new compact electric SUV, tentatively named the IONIQ 2, on the sidelines of the upcoming IAA. This will mark the second time the Korean carmaker has joined the fair since first appearing in 2021.

Hyundai’s decision to unveil the vehicle in Europe is aimed at absorbing more EV demand from customers there, as European countries prefer compact electric models to huge cars powered by internal combustion engines.

Kia's electric vehicle (EV) lineup is showcased during 2025 Kia EV Day at Tarraco Arena in Tarragona, Spain, Feb. 24. Courtesy of Kia

Early this year, Kia also unveiled a prototype of its EV2 compact SUV in Spain, underscoring the growing geographical importance of Europe as the two carmakers under Hyundai Motor Group grapple with the aftermath of tariffs set by the United States.

Hyundai Motor and Kia must expand their revenue in Europe, as their EV business in the U.S. is at risk of losing growth momentum following the country’s plan to stop offering EV tax credits by the end of September.

Genesis is also scheduled to open a booth at the upcoming auto fair to promote its future growth strategy in an era of eco-friendly mobility. All of Hyundai Motor Group’s auto brands were absent from IAA Mobility 2023.

“Hyundai Motor Group’s return to IAA displays its willingness to expand its EV presence in Europe amid mounting challenges in the U.S.,” an official from the auto industry said.

“As the global EV industry has yet to reach saturation, the carmaker will do its best to expand its European market share rapidly by introducing more price-competitive and highly commercial EV lineups targeting local customers there.”

BMW Group is also drawing attention, with plans to unveil its iX3 electric SUV equipped with its Neue Klasse platform for the first time at the upcoming IAA. The vehicle is the first model to be mass-produced with the new platform by BMW.

According to the German carmaker, the new iX3 is a “highly tech-intensive” model featuring advanced electric functions, connectivity and infotainment systems.

BMW i5 electric sedan / Courtesy of BMW Korea

At the mobility fair, the carmaker will also introduce the vehicle’s bidirectional charging technology. It enables the vehicle’s battery to supply power to home or a public grid, making the iX3 a fresh source of power under various circumstances.

BMW will also showcase its diverse EV lineups, including the i4, i5 and i7, at the event, to underscore its commitment to leading the premium EV industry.

“BMW Group will set up an exhibition hall with a size of some 2,000 square meters, and visitors will be able to get a better grasp of our vision for electrification,” an official from the carmaker said.

Mercedes-Benz also plans to unveil the all-new GLC with EQ Technology electric SUV at IAA for the first time. The electric GLC will make its debut with a wholly redesigned outfit. The vehicle comes with symbolic significance as the first model featuring the new EV design identity.

The logo of Mercedes-Benz is seen on a car in Dortmund, Germany, July 30. AFP-Yonhap

The carmaker will also showcase a series of other strategic lineups, such as the all-new CLA family and the all-new CLA Shooting Brake.

Global auto parts makers are also moving to utilize the mobility fair as a key venue to forge ties with carmakers.

LG Electronics will join this year’s IAA and is set to hold a session on “Redefining the in-cabin experience: why the automotive content ecosystem matters.”

The firm’s executives will meet with potential new collaboratives and seek future partnerships to lead the upcoming era of software-defined vehicles.