SBD expert perspectives from IAA Mobility 2025

The SBD Automotive Events Team has returned from IAA Mobility 2025. Held every two years at the Munich Exhibition Center and across several city venues, IAA Mobility gathers vehicle manufacturers, component suppliers, technology and software companies, and a wide range of mobility service providers. The event was split between a business focused exhibition area and a consumer oriented Open Space.

At IAA Mobility 2025, BMW unveiled the iX3, the first vehicle built on the BMW Neue Klasse platform. Mercedes Benz marked the world premiere of the new electric GLC while the VW Group introduced an affordable entry level Electric Urban Car Family. Chinese OEMs were omnipresent, making clear they are targeting the European market with both vehicles and technology.

Several major trends emerged at IAA Mobility and are worth examining.

IAA Mobility Key Trends

1 - Agentic AI for Automotive Application

Agentic AI for SDV Development

The software landscape in automotive, unlike hardware, demands continuous updates throughout its lifecycle. The "shift-left" trend has been happening for a while, especially in automotive software development.

At IAA 2025, companies like AWS, Vector, Valeo, and Rightware showcased their automotive development toolchains with Agentic AI capabilities, automating functions such as building, testing, and deploying software.

Agentic AI has also been applied in automotive diagnostics, with AWS offering an in-vehicle Agentic AI assistant, and Sonatus providing solutions such as Collector AI, AI Technician, and AI Director. In terms of shifting left, AWS and HERE Technologies announced its cloud-based SDV Accelerator which helps accelerate automotive manufacturers' path to proven virtualization benefits - while boosting these advantages through partner solutions.

Agentic AI For Improving In-car Experience

Google and Qualcomm have collaborated to develop multimodal AI agents using technologies from Qualcomm's latest Snapdragon Digital Chassis and Google Cloud's Automotive AI Agent, powered by Google's Gemini models. These tools will allow OEMs to design and deliver customizable AI experiences.

Meanwhile, Cerence AI is integrating Agentic AI into its in-car voice assistant system. Different AI agents are being developed for specific tasks, with the potential to evolve into multimodal systems similar to Google's approach in the future.

2 - Affordable EVs at IAA Mobility 2025

Passenger Cars

Volkswagen revealed the ID. Polo and ID. EVERY1 concepts - both are aimed at the affordable EV segment. Volkswagen Group also showcased the Skoda Epiq and Cupra Raval as part of their “Electric Urban Car Family”.

The Volkswagen ID. EVERY1 will be more affordable than the ID. Polo, with a starting price of around €20,000 and a claimed range of around 250 km (155 miles). The Volkswagen ID. Polo will be available in two battery sizes with a claimed range of up to 450 km (280 miles) - the entry-level model will be priced below €25,000 and is aimed for market launch by 2026.

Smart announced the Smart #2 two-seater car, planned for launch in the fall of 2026.

Micromobility

Linktour debuted the Alumi L6e and Alumi Elite L7e made exclusively for Europe, and they are expected to be priced between €9,000 and €15,000. They will launch in late 2025, starting in Rome. The Alumi L6e has a 7.2 kWh battery, a range of 120 km (75 miles). The Alumi Elite L7e has a 12.96 kWh battery and a range of 180 km (112 miles). These vehicles offer AC, touchscreen with connectivity and proper dashboard, unlike the Fiat Topolino and Citroen Ami.

Xyte Mobility launched the XYTE ONE electric three-wheeled scooter. The vehicle can reach a maximum speed of 100 kmph (63 mph) and a claimed range of over 100 km (63 miles).

3 - Improved EV Charging Experience

Expanding Charging Use Cases

Porsche showcased the Cayenne Electric with wireless charge capability. This function is based on the ISO15118-20 standard, which makes it compatible with other solutions. It is an option and available for €7k (€2k vehicle HW + €5k for 11kW charger) in 2026.

Announcements in the area of V2G and bidirectional charging were made. VW’s Elli announced a pilot for bidirectional charging in Germany, Valeo showcased Ineez, a new V2G-capable charger, and BMW & E.ON teamed up to launch Germany’s first commercial V2G solution for private customers.

Reduced Charging Time

800V architectures and improved batteries-enabled OEMs and Tier 1’s to showcase ultra-fast charging that significantly reduces charging times.

BYD unveiled its Megawatt Flash Charging, which can charge up to 400 km in 5 minutes, CATL introduced the first LFP battery capable of adding 478 km (WLTP) in less than 10 minutes and Mercedes-Benz demonstrated their 1000 kW charger with the AMG GT XX.

Production-ready models also demonstrated charging capabilities, including the Mercedes-Benz GLC (330 kW), BMW iX (400 kW), and XP7 (486 kW).

4 - ADAS Advancements

Expanding Charging Use Cases

Qualcomm introduced Snapdragon Drive Pilot, developed with BMW. The hardware platform is designed to support multiple OEMs across highway and urban ODD. It has been validated in 60 countries and can be adapted to different levels of autonomy based on the hardware configuration.

Desay SV showcased their full-stack (hardware + software) ADAS platform for Europe for urban and highway ODD. This modular platform can be adopted by different OEMs across vehicle segments and supports various levels of autonomy.

Axera and STRADVISION exhibited a low-power camera based ADAS stack scalable from entry to premium vehicles.

Advancements in Lidar Technology

Valeo presented their updated SCALA Gen 3 long-range Lidar. The Lidar has a range of 200 meters with 10% reflection, and it is capable of delivering up to 12.5 million points per echo per second, which is 50 times more than the Valeo SCALA Gen 2. The Lidar can operate at speeds of up to 250 km/h (155 mph) in L3 autonomous driving mode, although it will likely be limited to around 130–150 km/h (81–93 mph) in production vehicles expected sometime in 2026.

Hesai Technologies showcased their ETX ultra long-range LiDAR, which can be fitted behind the windshield for L3/L4 autonomous driving applications. It has a range of 400 meters with 10% reflection. SBD Automotive says: Consumer choice will drive economies of scale in the electric transition

Robert Fisher

"This year's edition of IAA highlighted the many new electric models in all segments and price points, either available today or in the near future. While charging speeds, range, and performance are still important competitive metrics in the EV space, providing consumers with an abundance of choice is what will ultimately lead to economies of scale in western markets. This underscores the importance of cutting edge, flexible platforms that can be used to power multiple product lines. VW and Hyundai groups are setting a benchmark for optimal usage of their platforms. I'm excited to witness the reduction of platform costs, reduced consumer pricing, and improved margins. This will be the key to long term electrification success."

- Robert Fisher, Event attendee and Senior Consulting Manager, SBD Automotive

Keeping ahead of the trends

The best way to stay ahead of the trends from IAA Mobility 2025 is the 301 Premium Event Report Series.

The 301 Series covers key automotive technology events worldwide including CES, the Shanghai International Automobile Industry Exhibition, and IAA Mobility. Each extensive report provides expert analysis of OEM and supplier announcements, product launches, partnerships, mobility start-ups and technology that could change markets.

The IAA Mobility 2025 report has just been released, with more than 90 pages of insight and analysis from the show. Contact your SBD representative to request access or download your copy today.

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