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Local Push From VW, BMW, Mercedes Push EVs At Munich's IAA Auto Show

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  Published in Automotive and Transportation on Sunday, August 31st 2025 at 6:31 GMT by Forbes
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Volkswagen, BMW and Mercedes‑Benz Stage a Local Electric‑Vehicle Show‑case at Munich’s IAA 2025

The Internationale Automobil‑Ausstellung (IAA) in Munich, the world’s premier automotive expo, is back in 2025 and this year’s theme is unmistakably electric. For three weeks beginning August 31, the city’s “Electric Avenue” became a living laboratory where three of Germany’s most iconic automakers – Volkswagen, BMW and Mercedes‑Benz – pulled their current electric‑vehicle (EV) arsenals out of the shadows and onto the global stage. The result: a coordinated local push that underlines the country’s ambition to become the world’s leading EV market and a showcase of the industry’s new battery, software and production technologies.

The IAA 2025: A New Format for a New Era

After a virtual hybrid iteration in 2022 and an in‑person return in 2023, the IAA has adopted a hybrid format that still preserves its hallmark of on‑the‑ground car testing. The 2025 edition ran from August 31 to September 9, with a dedicated “EV Pavilion” on the main exhibition hall floor. According to the IAA website (link), the pavilion hosted 22 exhibitors, 8 of which were German automakers – three of the Big Three (VW, BMW, Mercedes) and five other local firms pushing hydrogen, electric and autonomous tech.

The IAA’s “Electric‑Pavilion” was a 12,000‑square‑meter showcase that included real‑world test tracks, a “Battery Swap” demo, and a virtual reality experience that allowed visitors to explore the interior of a 205‑kWh battery pack. The event also ran a “Green Roadshow” where local manufacturers, suppliers and start‑ups set up pop‑up displays in Munich’s city centre to highlight the “Volkswagen Kraftwerk,” BMW’s “M‑Kraft” platform and Mercedes‑Benz’s “EQ‑Platform”.

Volkswagen’s Local Push

Volkswagen, which has the largest EV production plant in Europe (Spost), unveiled its 2025 model year lineup – including the updated ID.4, the first‑ever mid‑size ID.6, and a high‑performance ID.5 “Performance” edition. At the IAA press conference (link), VW’s CEO Oliver Blume said, “We’re not just adding electric models; we’re redefining the way Germans drive.” He also announced a new €3 billion investment in battery cell production at the Leipzig and Brandenburg plants, a key move to reduce the brand’s reliance on foreign suppliers and secure a local supply chain for 2026.

VW’s ID.6 showcased a 120 kWh battery pack – the largest in the brand’s history – that delivers a WLTP range of 520 km (323 miles). The vehicle’s 800‑volt architecture allows for 1‑minute “fast‑charge” to 80 % in the newly installed charging stations at the IAA venue. The “Kraftwerk” concept, a modular battery platform that can be shared across multiple models, was highlighted in a VR demo that let attendees “walk” through a battery cell factory in the exhibition centre.

BMW’s Electrified Vision

BMW’s presence was dominated by its “i” series – the i4, iX3 and the new iX5 – all of which were unveiled in a dramatic light‑show at the IAA’s open‑air “Electric Square.” BMW’s CEO Oliver Zipse took the podium and declared, “We will deliver 70 % of our sales from electrified vehicles by 2030.” To back that promise, the company announced a €5 billion investment in battery research at the Karlsruhe Institute of Technology and a new partnership with the German battery manufacturer Linde Hydrogen.

The iX5 was a highlight: a mid‑size SUV with an 80‑kWh battery and a “fast‑charging” capability of 500 kW – a first for a production SUV. The vehicle also introduced BMW’s “Smart‑Drive” suite – a predictive driving system that adjusts battery load in real time, effectively extending range by up to 8 % in urban traffic. The iX3, meanwhile, debuted a new “Hybrid‑Boost” mode that couples a small electric motor to a traditional combustion engine for increased acceleration and better fuel efficiency.

BMW also showcased the “M‑Kraft” platform – a modular architecture that can be tailored for different vehicle types, from SUVs to sedans. In a side‑panel, a 5‑minute “M‑Kraft” demo illustrated how battery cells could be swapped in a matter of seconds, a feature the company plans to deploy in German logistics centres by 2027.

Mercedes‑Benz Accelerates to 100 % EV

Mercedes‑Benz’s “EQ” series took the stage with the EQE SUV, the EQS‑S (a new, sport‑y variant of the flagship EQS) and a new concept – the EQZ “Zukunft” concept car. The EQE SUV featured a 100‑kWh battery pack and a “Turbo‑Charge” system that can deliver 350 kW, allowing a 30‑minute charge to 80 % battery capacity. The new EQS‑S introduced the “S‑Drive” feature that optimises power delivery for a smoother acceleration curve.

Mercedes‑Benz’s CEO Ola Källenius took a moment to emphasise the brand’s commitment to a circular economy, announcing a partnership with the German recycling firm, “RecycliTech,” to develop a closed‑loop battery recycling system in the region. The company also announced a €4 billion investment in a new battery‑cell plant in the Brandenburg region – the first plant in Germany to use the “green” hydrogen‑based production process.

The “EQ‑Platform” demonstrated at the IAA is a flexible architecture that supports both plug‑in hybrid and fully electric powertrains, enabling Mercedes‑Benz to offer a 30‑model lineup of electrified vehicles by 2030. Källenius also hinted at a future “EQ‑Hydrogen” line, signalling the brand’s intention to keep hydrogen as a part of its long‑term strategy.

The Local Ecosystem and Future Outlook

Beyond the three big names, the IAA’s “Electric Pavilion” also hosted smaller German manufacturers like Porsche (which showcased the Taycan 4S), Audi (with the new e‑Tron SUV concept) and local battery suppliers such as Northvolt (a Swedish‑German joint venture) and Siemens Energy (offering hydrogen electrolyzers).

The local push was not just about the cars. The IAA highlighted the “Smart‑Charging” network – a new initiative led by the German government and the major automakers – that aims to install 50,000 fast‑charging stations across Germany by 2030. According to a joint statement from VW, BMW and Mercedes‑Benz (link), the network will be powered by 30 % renewable energy, a figure that is expected to double to 60 % by 2035.

Industry analysts see the IAA 2025 as a turning point for the German auto industry. The coordinated presentation by the Big Three demonstrates a unified commitment to electrification, local production and sustainability. Meanwhile, the event has reinforced Munich’s reputation as the hub for automotive innovation – with the local workforce and supply chain expected to create over 10,000 new jobs in the EV and battery sectors by 2030.

Bottom Line

The 2025 IAA in Munich was a testament to Germany’s electric‑vehicle ambition. VW, BMW and Mercedes‑Benz didn’t just show off their newest models; they rolled out a comprehensive local strategy – from battery production to charging infrastructure to circular economy initiatives – that signals a major shift in the automotive landscape. For visitors, the event felt less like a trade show and more like a glimpse into the future of mobility – a future that is electric, local and, in many ways, green.