In EV Transition, German Carmakers Lag Behind Tesla and China
MUNICH—For decades, German carmakers dominated their industry with brands that were bywords for excellence and consumer appeal. But as the sector transitions toward electric vehicles, they are falling behind. Nearly a decade into their electric-vehicle shift, and despite billions in investments, VW, BMW, Mercedes and others have failed to make a dent in Tesla’s share of the growing market.
They are joining with Big Tech rather than developing their own software to power infotainment systems and self-driving features. And they are falling behind Chinese upstarts at the sharper edge of EV innovation, losing ground in the crucial Asian market. The industry’s defensive crouch is on full display this week at the IAA Mobility car show in Munich, one of the world’s largest auto trade fairs.
Tesla, the EV market leader, is present for the first time in years. So are several Chinese newcomers whose models have captured visitors’ attention. Once the showcase for Germany Inc.’s automotive prowess, the biennial auto show hammers home the lesson that new EV rivals from China aren’t only putting German and European automakers under pressure through lower costs, but also increasing technological sophistication, widening a gap that the established automakers are trying to close.
The show also serves as a vivid illustration of the new challenges facing Germany. Europe’s largest economy and long its main engine of growth, the country is now a laggard due to decades of underinvestment, stubborn inflation, rising interest rates and last year’s steep rise in energy prices following Russia’s invasion of Ukraine. “There are some areas where we have to catch up," Oliver Blume, the chief executive officer of the VW group of car brands that
. Read more on livemint.com
