Storyline: Chinese automakers making buzz at IAA Mobility in Germany [Voice_over] It's where the rubber meets the road. IAA Mobility is a chance for global brands to showcase their latest models in the battle for dominance in the electric vehicle sector. With an exhibition booth in the city center and the nearby trade fair Chinese car maker Leapmotor has launched its new Lafa 5 hatchback to help drive sales in Europe. [Sound_bite] Zhu Jiangming, Founder, Leapmotor: "Looking at the future of electrification, I believe it will follow two main paths: fully electric vehicles and hybrid vehicles. Alongside EVs, we also plan to increase our investment in hybrids so we can capture a solid share of the European market." [Voice_over] Despite tariffs of up to 35 percent Chinese firms saw new car registrations in Europe nearly double during the first half of this year to nearly 5 percent. Across Europe BYD outperformed Tesla in July. The company says it's adapting to the trade environment by localizing supply chains with an eye on further growth on the continent. [Sound_bite] Stella Li, Executive Vice President, BYD: "Tariffs are not a benefit for anybody while hurting European consumers. But for BYD as a global leader, as technology leader, we have a global mindset. So we are already in the process to localize ourself so our Hungary facility will start operating by end of this year." [Voice_over] Analysts say there are 40 percent more Chinese exhibitors at IAA Mobility this year compared to 2023. That brand visibility is seen as a growth strategy. [Sound_bite] Zhang Zihan, EV Research Analyst, Rho Motion: "BYD is sponsoring some of the major events we've seen in Europe so I think brand recognition is definitely something the Chinese OEMs are working on." [Voice_over] But the quest for market share is no one way street. European carmakers reportedly aim to unveil 350 new EVs by 2032. [Stand_up] William Denselow, Reporter: "Chancellor Frederick Merz says German brands should be leading that charge. But U.S. tariffs, sluggish demand and growing competition are potential roadblocks in the race for dominance in the EV sector." [Voice_over] And a number of major industry leaders see the European Commission's looming 2035 ban on combustion engines as a spanner in the works and are calling for flexibility. [Sound_bite] Peter Holdmann, Board Member, ZF Group: "Nobody believes that the electric mobility will be at that time already on a level where we really can, build only on that one. And that that is the biggest demand that we have to the Commission." [Voice_over] Critics say weakening these regulations will send Europe's environmental targets off track. But proponents say that closing the door on hybrids and other vehicles could hand the keys to the market over to Europe's competitors. [Restrictions : No access Chinese mainland]