Berlin (dpa) - Germany's automotive industry is under pressure as it faces fierce competition from China, backlogs in new technology and weaker demand, industry experts warned ahead of the annual IAA Mobility show in Munich.
Without "massive reforms," Germany risks losing its distinction as a car industry powerhouse, the president of the German Association of the Automotive Industry (VDA), Hildegard Müller, told dpa on Monday.
Müller mentioned over-regulation, slow political decisions and the lack of a legal framework for future issues such as artificial intelligence as key issues.
The main point, she said, was that "Germany is dramatically losing its international competitiveness because of the cost structure."
Energy costs in particular are much higher in Germany than in other car manufacturing locations, she pointed out.
The automotive industry has been calling for a temporary state-subsidized electricity price, as it would help prevent battery or semiconductor manufacturers from leaving Germany or choosing not to settle there in the first place.
Such a subsidy has been a topic of much debate in Chancellor Olaf Scholz's governing coalition.
Scholz is set to open Germany's biggest motor show, IAA Mobility, on Tuesday. The expo brings together car manufacturers, suppliers, tech companies and politicians.
Germany's car industry faces major competition from Chinese manufacturers, especially when it comes to electric vehicles.
Industry expert Ferdinand Dudenhöffer from the Center for Automotive Research called this year's car show "the IAA of the Chinese" and a "turning point that will make Europe an interesting market for Chinese electric cars."
While German brands like Volkswagen are struggling to find their footing in the Chinese e-car market, with the manufacturer recently losing the market leadership it had held for decades with its core brand VW Passenger Cars, the advance of Chinese EVs will be omnipresent at this year's IAA.
Chinese car manufacturer BYD, by now the world market leader with 1.86 million e-cars sold this year, is presenting itself for the first time at this year's edition.
BYD is showing six sedan and SUV models that were also on display at the auto show in Shanghai. At the very large stand, BYD Europe boss Michael Shu gave the trade audience an overview of the group's 20-year history on Monday.
Sales of the BYD cars in Germany are to start soon.
Chinese electric car manufacturer Xpeng also announced plans to launch its vehicles in Germany next year.
After a few northern European markets, the models are also to be sold here in 2024, said Vice Chairman of the Board of Directors Brian Gu on Monday in Munich.
He said the move into the German market was planned carefully and is a big and strategically very important one for the company.
"Our success in Germany will determine our success in continental Europe," Gu said, but added it was still too early to give details on possible sales figures.
Chinese carmaker Nio, meanwhile, is offering a unique deal on the German market: Instead of charging the battery of their electric cars themselves, Nio drivers can have them replaced automatically within a few minutes at an exchange station.
In China, battery swapping instead of charging is widely accepted, said European boss Hui Zhang on Monday ahead of the IAA show.
In China, Nio currently operates 1,800 battery swap stations, while it only has 7 in Germany and 20 in the rest of Europe. "In Germany, the authorization for a station takes over 10 months," he pointed out.
