Automakers unveil new electric vehicles and budget-friendly models at Munich auto show

European Automakers at Munich Car Show: Major automakers showcased new electric vehicles (EVs) and lower-cost models at the Munich car show, addressing challenges such as tariff hikes, rising costs, and competition from Chinese firms.

Shift in Production Focus: Companies like Volkswagen and Stellantis are expanding their production focus beyond just EVs due to tough EU carbon emissions targets and high costs, with a push for more affordable models under 25,000 euros to boost EV adoption in Europe.

Chinese Competition and Local Production: Chinese automakers, including BYD and Leapmotor, are ramping up their presence in Europe, with plans for local production to avoid tariffs and introduce new affordable EV models, intensifying competition in the market.

Challenges for Luxury Brands: Volkswagen's luxury brand Porsche is facing difficulties in achieving its long-term margin targets due to tariffs and a weak Chinese market, highlighting the broader struggles of European automakers in the current economic landscape.