Chinese carmakers confront European industry at Munich show

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Chinese manufacturers will be out in force at next week's IAA auto show, one of the industry's biggest, revving their new electric models on the turf of German carmakers, which have been lagging in the e-mobility race. At the same time, European manufacturers are facing increasingly stiff competition from Chinese carmakers which are touting their vehicles at far lower prices.

BYD will be one of the Chinese electric car manufacturers showing off its vehicles at the IAA auto show in Munich next week. Photo: Jack TAYLOR / AFP/FileHave you recorded a funny video or filmed the moment of fame, cool dance, or something bizarre?Chinese manufacturers will be out in force at next week's IAA auto show, one of the industry's biggest, revving their new electric models on the turf of German carmakers, which have been lagging in the e-mobility race.

While suffocating supply chain problems have eased from the pandemic years, European auto giants are struggling to cope with increased energy costs in the wake of the Russian invasion ofAlthough sales in the European Union have steadily improved over the last 12 months, they remain around 20 percent below their pre-coronavirus levels as inflation and higher interest rates dampen appetite for new vehicles.

In all, 41 percent of exhibitors at the industry fair have their headquarters in China, including brands such as BYD and Leapmotor which will hope to steal the spotlight from German giants Volkswagen, BMW and Mercedes-Benz.

Automotive groups have not helped their case recently by recording massive profits on the back of strong inflation.

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