
Published 02 October 2025
Craig Thomas
European brands used Munich automotive show IAA Mobility (September 9-14) as a platform to launch new models to fight back against Chinese brands’ sales gains on the continent. Automakers now focus on more affordable electric vehicles (EVs), while the price difference between combustion engine cars and EVs is starting to disappear. As cars become more reliant on software, global software giants, like Google and Microsoft, are increasingly collaborating with automotive brands.
The Volkswagen ID Polo launched in Munich was the first example of how the German brand is merging its two naming systems: future battery electric cars will wear the familiar nameplate of a combustion engine model closest in size. Meanwhile, Volkswagen is also futureproofing its legacy, creating lovable EVs by taking styling cues from famous models.
The Volkswagen ID Polo launched in Munich was the first example of how the German brand is merging its two naming systems: future battery electric cars will wear the familiar nameplate of a combustion engine model closest in size. Meanwhile, Volkswagen is also futureproofing its legacy, creating lovable EVs by taking styling cues from famous models.
The Audi Concept C previewed the design language introduced by Massimo Frascella, the brand’s new head of design, that revolves around radical simplicity and technical precision. Inside, refined natural materials combine with physical controls in anodised aluminium.
Cupra – a sub-brand of Spanish carmaker Seat, which is itself owned by the Volkswagen Group – unveiled two new models in Munich, highlighting the importance of design to the Barcelona-based brand.
Czech carmaker Škoda championed its new Modern Solid design language, emphasising practicality and accessibility while introducing artificial intelligence (AI) assistance for enhanced modes.
Price differences between traditional combustion engine cars and EVs are starting to disappear, as exemplified by the new BMW iX3, which is cheaper than its predecessor. The first of the 40 new and updated BMW models to be launched by 2027, the BMW iX3 is the first to use the German brand’s Neue Klasse platform.
The GLC, Mercedes-Benz’s bestselling model globally, is to have a new EV variant, unveiled in Munich, offering a zero-emissions alternative to the combustion engine GLC (which Mercedes-Benz will continue to sell).
Hyundai’s radical design study for an all-electric family hatchback, called the Concept Three, is a strong indication of what the South Korean brand will launch as the Ioniq 3 in 2026.
Renault unveiled its all-new sixth-generation Clio, due on sale in 2027, with a bold, fresh look that shifts away from the design language of current Renault models.
The Polestar 5 revealed in Munich is an aluminium-bodied four-door sports car with an aerodynamic appearance, described by Polestar as having “modern, minimalist surfacing free of unnecessary embellishment”.



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