September 2023

3000e-23

IAA Mobility Event Report
IAA Mobility 2023 - Munich

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Contents
3000e – IAA Mobility Event Report
Introduction ≫4

Announcements and CEO Keynotes ≫22• Model Launches

Key Notes ≫8• CEO Announcements• Continental• Deep Route AI

Key Trends ≫11• Next Steps ≫25• Contact Us ≫29

• Top Trends• Sustainable Manufacturing• Generative AI• 800-Volt Architecture• Dimmable Glass• Battery Management• Screen Evolution• Driver Monitoring• Habitat on Wheels• Minimalist Interiors

Total number of pages - 29

Introduction
An introduction to the IAA Mobility Show

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Introduction

What was IAA Mobility 2023?
The 2023 edition of IAA Mobility was held in Munch from 4 – 10 September. The aim of the event is to give businesses the opportunity to showcase theirnovel mobility solutions and for professionals working in the mobility sector to network. There was dedicated areas for startups to show their products orservices.
The mobility event is held every two years. The next edition will be in 2025. In 2023, the event was split between the Messe München conference centerand Munich city center. Six halls of the conference center and 7 sperate locations in the center of Munich were used. The open space in Munich city center
was consumer facing and free for the public.
IAA Mobility is attended by vehicle manufacturers, technology companies, component suppliers and service providers.
Mobility and personal mobility is an area of interest for Governments and OEMs. Governments are encouraging personal mobility and micro mobility
solutions to decarbonize journeys and reduce the impact on climate. For automobile manufacturers, mobility is an area of interest because vehicles are
becoming more automated and vehicle ownership is less common.
This report provides a summary of the main trends from IAA Mobility 2023. This includes OEM trends, latest research announcements, novel products, andsignificant announcements.

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Introduction

Visitor numbers are returning to pre-COVID levels
OEMattendance

IAA Exhibitor Numbers

2017

24

800,0002019

20

700,000

2021

16

2023

18
(41% from
Asia)

Number of attendees in person

900,000

810,000

566,000

600,000

500,000
500,000
400,000

400,000

Exhibitor
attendance

300,000

200,000
100,000
0
2017

2019

2021
Year

2023

2017

1000

2019

800

2021

744

2023

750

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6

Introduction

At IAA 2023, exhibitors focused on sustainability

2017 (Frankfurt)

2019 (Frankfurt)

2021 (Munich)

Advanced Driver AssistanceElectric Vehicles

New Energy Vehicles

Circular economies and sustainable manufacturing methods were on show at IAA
Mobility 2023. Chinese OEMs and suppliers dominated the show, but underlying
the event was a push by OEMs and Tier 1s to decarbonize their supply chain anduse materials more responsibly. This includes material recycling and not using
fresh water.

Volkswagen Group2023

Sustainable
Manufacturing

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Keynotes
An overview of Continental and Deep Route AI keynote

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Keynote

Continental

Continental are investing in artificial intelligence
Keynote Summary• Philipp von Hirschheydt, Continental Executive Board Member and Head of Automotive announced a newpartnership between Google Cloud and Continental AG.
• Continental will offer Generative Artificial Intelligence integrated into their products. The AI model will haveaccess to vehicle information, allowing it to inform the user about a wide range of vehicle parameters. This
could be the correct tire pressures or where nearest charging point is.
• The Conti Cityplus concept tire, optimised for inner city driving was presented in the keynote. The tire ismore efficient, to extend range the range of electric vehicles (EVs) and has a low rolling noise level.
Continental also detailed a path to using renewable materials for their tire manufacturing operations.
• High performance computers (HPC) and software visualization were also outlined. By the end of 2024,
Continental HPCs will be available on 30 vehicle models across different manufacturers. Their software
visualization process allows hardware to be tested virtually, reducing total development time from 3-5
years to 18 months. With this, vehicles will have more up to date hardware and software.
• Though not outlined in the keynote, Continental have reduced their range of HPC models from 4 to 3. This
is to reflect how the organizational structures of OEMs is being adapted.

Continental Press conferenceContinental AG

Key takeaway
There is a potential application of Generative AI on board. Continental and Google demonstrated their systemcapabilities on a vehicle based on the VW ID Buzz. The user could say ‘Hello Buzz’ to initiate the companion.
Commands like ‘find the nearest charge point’ could. Continental and Google expect to make this available on
vehicles in 2024.
Partnership between Google
Cloud and Continental

99Keynote

Deep Route AI

Deep Route AI are moving away from maps
Keynote Summary• DeepRoute AI announced that they are expanding to Europe. DeepRoute AI provide vision based
automated driving systems. The system uses Lidar, cameras and radar for the purposes of automateddriving. They are already partnered with Volkswagen, Geely and NVIDIA and Robosense provide lidar
sensors.
• At IAA Mobility 2023, DeepRoute AI announced that they will be moving to Europe, setting up a hub inGermany.
• Deep route AI also debuted their Driver 3.0 solution. Through continued development, DeepRoute AI
have reduced the cost of materials of their autonomous system from USD 35,000 per vehicle (Driver
1.0) to USD 1000 – 2000 per vehicle (Driver 3.0). Driver 3.0 is a L2+ to L4 system that requires
standard definition maps only. There is claimed to be no ODD restrictions.
Progression of DeepRoute AI products

Key Takeaway• The system does not require HD maps. DeepRoute AI expect HD maps to be expensive and hard tomaintain. DeepRoute AI is expecting there to be discussions about potential regulatory requirements for
HD maps. This would be to protect privacy of certain infrastructure.
• Xpeng have moved away from HD maps in favor of a vision-based system because creating an HD
maps takes time and money. Ideally the map would be updated frequently, every 1-2 weeks, but inreality, it may not be that much.
• Currently, HD maps mainly cover highways. For vehicles used by commuters in urban areas, not having
map coverage may mean autonomous functionality isn’t available. DeepRoute Ai hope to address thisby using a vision-based system.
DeepRoute AI partners

1010Key Trends
The key trends from IAA Mobility 2023

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Keynote

Overview

IAA Mobility 2023 - Top Trends
Core trends
Sustainable
Manufacturing

Generative Artificial
Intelligence

800 Volt
Architecture

Supporting trends
Dimmable Glass

2023
TrendsBattery Management

Screen evolution

Driver Monitoring

Habitat on Wheels

Minimalist Interiors

Announcements and Keynotes
Model Announcements

CEO Keynote

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Click to navigate

12TrendSustainable Manufacturing

Sustainable manufacturing processes
OEMs are making their supply chains moresustainable

Audi Circular Economy Loop

Volkswagen Manufacturing Facility...suppliers are doing the same

ZF motor without magnets▪ At IAA Mobility 2023, Volkswagen Group provided details on their e-fuelproduction facility in Chile. The plant recycles carbon dioxide from theatmosphere and combines it with water to create e-fuel. The plant uses windenergy and is a proof of concept. In 2027, Volkswagen Group intend to open
another plant in the same location.

▪ At IAA, there was a trend of suppliers looking make their products moresustainable. Ascorium Industries offer a spray on material for dashboards. The
product is currently used by Porsche and Polestar. The process is carried out
by robots, so OEMs bring the dashboard finishing process in house. The main
advantages are minimal waste and reduced human interaction.

▪ In the Open Spaces area of the IAA Mobility event, Audi detailed its efforts tocreate a more sustainable vehicle lifecycle. Their focus is on recycling end-oflife vehicles as feedstock for new models. This includes battery and glass
recycling to create a continuous loop of materials. They do not use fresh waterin production.

▪ SBD noted that suppliers of Tier 1 companies are asked where raw materials
for components are sourced, how they are processed and if company car fleets
are EVs or ICEs. Going forward, Tier 1 suppliers will likely ask for further
evidence, and in the long term, ask how sustainability is being improved.

▪ SBD noted multiple benefits to these efforts: 1. Reduced consumption of virginmaterial, and 2. reduced energy costs and less exposure to fluctuating prices.
This is particularly important for EU based manufacturers that import a large
amount of energy. Manufacturers will likely choose countries where theprevailing atmospheric conditions are favourable for renewable energy.

▪ Examples of sustainability improvements outlined at IAA include electric robots
instead of pneumatic, energy recuperation from robot movements andcapturing waste heat. Manufacturers that do not have experience of reducing
energy consumption will be at a disadvantage in future.

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TrendGenerative AI

Generative Artificial Intelligence
Generative AI can be used to streamline
organization information flow

It also has the potential to enhance user
experience

Cognizant Mobility
Cognizant Mobility Very Enhanced Road AssistantContinental AI survey result▪ Reply are using Amazon Web Services to run their Generative Artificial
Intelligence (AI) service. Audi is using the Reply AI service to streamline
data sharing. Colleagues at Audi can ask the AI model a question andreceive an answer.

▪ The AI model has access to corporate files and documents and uses these to
create answers to questions. Currently, the model uses internal documents,
but potentially could be expanded to include external websites and online
meeting transcripts.
▪ The aim of deploying AI is to smooth out data sharing processes within theorganisation. Colleagues can ask the model a question and receive ananswer. On a wider scale, Audi could use this to identify common questions
with a view of reforming areas of the organisation to improve informationflow.

▪ Continental have partnered with Google Cloud services to offer an in-vehicle
Generative AI companion. This was a new announcement at IAA Mobility 2023.
▪ The Generative AI model can provide restaurant recommendations, find local
charging points and plan routes. At this stage, the companion is unable tocarry out vehicle commands, like adjusting temperature or operating electricwindows.
▪ Continental is expecting the model to be introduced to production models by
2025. The AI model listens to the driver, converts speech into a command andthen interrogates an API. The API has information like charge point locations
and restaurant locations. The API can be a third party. The AI model
demonstrated at IAA is cloud based.

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Trend800-volt architecture

800-volt architecture
Next generation vehicles will be built on 800-voltarchitecture

Components are already available tosupport roll out

ZF motor without magnets
Mahle 800-volt components

BMW Vision Neue Klasse▪ Production versions of the vehicles exhibited by BMW and Mercedes-Benz will
be based on platforms that support 800-volt architecture.

▪ The BMW Neue Klasse will use an 800-volt sixth-generation drivetrain withlithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC)
batteries.
▪ The Mercedes-Benz MMA-Platform (Mercedes Modular Architecture) uses 800volt architecture. The production version of the CLA concept car, as shown at
IAA Mobility 2023, will be based on MMA 800-volt platform.
▪ Audi exhibited the Q6 e-tron, which will also be based on an 800-volt platform(premium platform electric).

Audi Active Sphere (800 volt)▪ ZF exhibited an 800-volt electric motor with novel windings (without magnets).
The motor was displayed alongside the EvBeat concept car. The concept car isbased on a Porsche Taycan.
▪ Mahle exhibited 800-volt compatible products and indicated a potential trend ofincreasing voltages. Mahle, in partnership with Siemens, also exhibited awireless charging solution.
▪ SBD expects 800-volt systems to be deployed more widely in the near future.
Higher voltage systems allow a lower current to be used, which reduces
overheating and allows better power retention. Retained power can be used
towards a longer driving range.

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TrendDimmable Glass

Dimmable Glass
Renault offer dimmable glass on Scenic E-Tech
Electric

Suppliers also exhibited dimmable glass

Renault
Renault Scenic E-Tech dimmable glass

WebastoWebasto sunroof

Gentex dimmable HUD glass▪ Renault debuted the new Scenic E-Tech Electric at IAA Mobility 2023. The
vehicle is available with a dimmable glass panoramic roof. The front and rear
sections of the roof can be adjusted independently. The glass can be adjustedwith voice commands.

▪ Webasto demonstrated dimmable glass at IAA 2023. The transparency of theglass can be adjusted, and OEM logos can be incorporated. Webasto are
discussing with OEMs the possibility to include logos in the glass and theopportunity allow the user to change the color of the backlighting.

▪ Manufacturers may be looking to balance the need for headroom in the cabinwith a body that is aerodynamic. Dimmable glass removes the need for afabric blind and rolling mechanism, which saves space. This increased
headroom enables a sleek body profile to still be achieved.

▪ Gentex Corporation demonstrated a range of dimmable glass products. The
products included dimmable sun visors, windscreen and panoramic roof. A
separate pain of glass in the interior to cast head up display information on was
also shown.

▪ SBD expects dimmable glass to receive more interest from OEMs. Plain
panoramic roofs with fabric blinds are not as flexible and cannot be customizedby the user. Dimmable glass could also support the wider trend of the habitaton wheels.

▪ SBD expects the rollout of dimmable glass for windscreens and sun visors to be
slow. Approval regulations related to the visibility of windscreens may need to beamended first. Also, in some regions, sun visors must be made of an absorbing
material. Based on this, SBD expects dimmable glass technology to be limited to
panoramic roofs.

1616TrendBattery Management

Battery Management and Protection
A range of battery protection products wereshown

Companies specialising in battery
management also exhibited

Innovation Lab
Battery casing and chassis

Battery cell pressure sensor▪ Novel battery casings and safety structures were exhibited at IAA 2023.
Innovation in the shape complexity of battery casings as well as improvements
in crash protection were the most common.
▪ Suppliers are looking to provide more complex shapes for battery casings to
make better use of available space. Magna exhibited a novel composite battery
case that could be shaped to fit around other components.
▪ Magna demonstrated the capabilities of a new manufacturing process that cangive deep sections, with near perpendicular angles. The objective is to offer abattery case that is deep and does not need to be welded. The aim is toprevent water ingress.

WAE
Example of battery casing

WAE battery health software▪ As well as casing and battery support structures, other methods of battery
protection were exhibited.
▪ Innovation Lab demonstrated pressure measurement components that can
detect high pressure inside a battery. This information can be then used toadjust charging strategies. Changes to charging strategy can lead to
improvements in battery life. Improvements can be as much as 40%.
▪ WAE demonstrated a battery health monitor for fleet managers and OEMs. The
software uses inputs like acceleration, driver behavior and temperature to
determine battery health.

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17TrendScreen evolution

Screen evolution
Screens took all shapes and sizes

Screens appeared on the interior andexterior

Samsung exterior screen
Samsung OLED Capacity

Valeo exterior lighting

Mini Aceman concept• A range of display sizes and types were shown at IAA Mobility 2023. These
ranged from augmented reality HUDs to holographic projections.

• Samsung and Valeo exhibited exterior screens for vehicles at IAA Mobility 2023.
The exterior screens could potentially show battery charge information or indicate
the direction of passing emergency vehicles to pedestrians.

• ZEISS presented a holographic product that can show information onpassenger windows. The technology is expected to be used in aircraft but waspreviously used in space missions. Holographic technology in a vehicle canmake being a passenger more interactive.

• The new Mini Cooper and Countryman will be available with a single central screen.
The screen will show speed and other important information to the driver. A HUD isalso available.

• The BMW Neue Klasse uses a 3D head up display that projects information at
ideal points on the windscreen. With the Neue Klasse concept, BMW ishighlighting new solutions for innovative screen and display technologies.

• Samsung exhibited rollable, extendable and folding screens. This technology can beused by OEMs to create an interior that can be customized to suit the needs of the
user.

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TrendDriver Monitoring

Driver Monitoring
Driver facing cameras were exhibited

They were applied to a diverse range ofapplications

Magna
Magna driver monitoring
Mercedes-Benz E-Class driver facing camera▪ The Fraunhofer Institute showcased cameras which can detect heartrate
through reflections in the skin. Detecting heartrate can be used to determine
drowsiness.
▪ The technology can also be used to determine stress levels. This can then be
used to change temperature controls or adjust ambient lighting to alleviate
stress.
▪ Magna demonstrated the capabilities of a rear-view mirror system. Rear view
camera system is less likely to be obstructed and can be used to detect
passengers in rear seats.

▪ With the introduction of the General Safety Regulation in Europe,
manufacturers are required to fit driver distraction monitors. OEMs
demonstrated their intention to try to recover the costs of fitting the sensors
required to comply with the Regulation.
▪ A range of approaches to driver facing cameras were on display at IAA 2023.
Approaches to driver monitoring are likely based on vehicle architecture. On
the new Mercedes-Benz E-class, shown at IAA, the driver facing camera ismounted on the dashboard and can be used for video conferencing.

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TrendHabitat on Wheels

Habitat on Wheels
The habitat on wheels was discussed at IAA
2023

OEMs and suppliers are ready to realize thebenefits

ForviaForvia Lumiere concept
SBD Automotive at IAA Mobility 2023

▪ SBD Automotive and digital.auto (Bosch) had a panel discussion about
what future vehicles will mean to the user
▪ The habitat on wheels had many meanings to the panel of experts. Soon,the vehicle could be like the home, and home is always changing. For
example, for the digital.auto (Bosch) speaker, based in Bangalore, canspend 3.5 hours in the car each day commuting to work. Whereas people
in China like to take a comfort break in their car. It is important for OEMs
to ask a local question and seek a local view.

▪ Forvia exhibited a vision for the habitat on wheels. The Forvia "Lumières"cockpit shown at IAA 2023 is designed to demonstrate how a vehicle canbe used for different purposes. The concept demonstrates how ambient
lighting can be used in the cockpit.
▪ LG electronics also expect future cockpits to be used for different
purposes, like watching films or as an office. As discussed in CEO keynote,
LG will be developing products to support this transformation.

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TrendMinimalist Interiors

Minimalist interiors
A range of concept interiors were exhibited

Renault concept interior

Minimalist design was a common trend

Avatr 12 interior
Audi activesphere

Mercedes-Benz CLA concept▪ Mercedes-Benz Vision One Eleven concept and Mercedes-Benz CLA concept
use versions of a pillar-to-pillar display and limited physical controls. Steering
wheel controls are still used, however.

▪ The update to the Tesla Model 3 does not have physical stalks on the steeringcolumn and is equipped with a fast-responding touchscreen in the rear. The
lack of physical stalk could be a potential negative to the user interface.

▪ Opel experimental concept follows a similar trend of using a pillar-to-pillar
screen combined with a head up display.

▪ Minimalist interiors could be a longer-term trend for vehicle cockpits, butadvancements in other areas may be required for it to be realizes. Reducing
the number of buttons will be dependent on other forms of interface like voicerecognition technology and generative AI companions.

▪ There is limited use of screens and physical controls in the interior of the Audi
activesphere Concept.

▪ The BMW Neue Klasse concept is fitted with a full width head up display. The
Neue Klasse demonstrates minimalist interiors with its innovative display
technologies.

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Announcements and CEO Keynotes
Highlights of OEM announcements and CEO keynotes

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Announcements

Model launches

IAA Mobility 2023 model launches

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Announcements

CEO Announcements

IAA Mobility 2023 – CEO messages
Renault

Qualcomm

BMW

Luca de Meo(CEO of Renault
Group)

Cristiano Amon (CEO)Oliver Zipse (CEO)Renault are pushing for EV price reductions but do
not want a price war. A re-commitment towards
initial Public Offering of Renault EV brand, Ampere.
Luca de Meo also acknowledged that Chinese OEMs
have a more advanced supply chain than European
OEMs.

Qualcomm are expecting automobiles to continue tobecome safer and more automated. They expect
future vehicles to become a software defined living
space. To support this, Qualcomm are developing ascalable digital chassis capable of supporting OEM
and 3rd party apps and services.

Expect to remain profitable with EVs when theylaunch Neue Klasse. EU rapid transition away from
ICEs is 'reckless’. EV charging deployment not
mature enough for EV mandate. 2035 EU Sales Ban
on ICE Cars Will Fuel Price War With Chinese OEMs.
Move away from FaaS premium subscriptions due tolow demand

Mercedes-Benz

Volkswagen GroupBYD

Ola Källenius (CEO)Oliver Blume (Chairman)

Michael Shu (Managing
Director, Europe)

Mercedes-Benz are expecting the variable costs of
EVs to remain higher than ICEs and that sales in
Europe are unlikely to be all-electric by 2030. Olla
Kallenius acknowledged the pressure on OEMs to
get more driving range using less energy.

Volkswagen do not expect price parity of EVs to bereached until end of the decade. Despite this, they
feel ready for the 2035 combustion ban in Europe.
The Volkswagen Group sees itself as well positioned
over Chinese OEMs and is bullish on Chinese
economy.

BYD discussed intentions to grow market share ofpassenger cars in Europe. BYD’s efforts to achieve
more sustainable manufacturing were highlighted.
Batteries as home energy solutions were alsomentioned. BYD vehicles are now available in 15
European countries.

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Next StepsContents
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Next Steps

Expert Insight
Tracking sustainability initiatives is important

Underlying OEMs’ activities at IAA Mobility 2023 was a push formore sustainable operations. This was both macro level decisions,like the location of production facilities, to small scale energy
saving techniques that can be used day-to-day. OEMs that haveexisting experience of reducing energy consumption will be better
placed when life cycle sustainability becomes more important.
Mike Levet, Report Author

Electrification development is relentless
The industry’s continuous R&D efforts into electrification are broad
and aimed at leveling up the entire EV package. Innovations arecoming in the form of increasing powertrain voltages to enablesuper fast charging and enhanced battery architecture andmanagement techniques. Super fast charging in particular willease the transition from ICE to EV, yet charging infrastructure willneed to keep pace.

IAA is regaining momentum

The IAA halls were busy, and the open space waswelcoming to specialists and the broader public. For
families, it was a fantastic opportunity to visit booths andsee new vehicles and developments. In future, I expect
more OEMs will attend, to show concepts, and production
versions of the concepts exhibited this year.
Zafer Uyanik, SBD Germany

Watching Generative AI closely
We all expected to see a rapid roll out of conceptual AI
driven applications, but I’ve been surprised that OEMs are
already using Generative AI for real applications. I’mlooking forward to watching this space carefully in our
2024 AI for Automotive Guide.
Simon Halford, Analytical Reports Manager

Rob Fisher, Domain Principal - Electrification

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Off-the-shelf Research Reports – Fast access to the latest automotive research

EV Guide

Digital Cockpit &Infotainment Forecast

EV Battery Technologies &Ecosystem

AI for Automotive Guide

SBD’s EV Guide provides insight into
the current situation for mass-produced
passenger and light commercial EVs,
their features.

SBD Automotive’s Digital Cockpit &Infotainment Forecast provides an
outlook on the penetration of cockpit
elements and key cockpit features,showing their fitment rate by market
ten years into the future.

SBD’s new battery report dives deep
into the technologies, chemistries, andplayers in the battery industry.

Identifying which players are driving
innovation and how OEMs will need toadapt is key for s/w functions,
corporate strategy, marketing andpartnership identification divisions.

Coming in 2024

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