Chinese Automakers Struggle with Low Brand Recognition in Germany; Breakthrough Demands Long-Term Investment and Diversified Marketing

Multiple Chinese automotive brands are facing challenges in building brand awareness in the German market. Surveys show that most Chinese brands have unprompted brand awareness among German consumers below 11%. Among newer entrants, Changan’s Shenlan and Chery’s Omoda/Jaecoo brands each register awareness of only about 1%, while Great Wall Motors stands at 5%, and Leapmotor and Lynk & Co reach 11%. In contrast, BYD has achieved a recognition rate of 64%, largely due to its sponsorship of UEFA Euro 2024 in Germany, and MG, leveraging its British heritage, enjoys 26% awareness. Industry consensus holds that a brand must achieve at least 20% unprompted awareness to be considered firmly established in the local market. Martin Fassnacht, Professor of Marketing at WHU – Otto Beisheim School of Management in Germany, noted that new brands entering the German market typically need to invest hundreds of millions of euros over their first five years, with cumulative spending potentially reaching up to €1 billion over a decade. Consumers are generally reluctant to purchase vehicles from unfamiliar brands, making it crucial to build positive word-of-mouth and a strong brand image. He also highlighted a “double bind” facing Chinese automakers: on one hand, they contend with dominant domestic German carmakers; on the other, they start from a very low baseline of brand recognition. Additionally, some Chinese automakers have adopted flawed overseas pricing strategies—initially setting prices too high, only to later get caught in price wars. To enhance their influence, several Chinese automakers are significantly increasing marketing investments. Great Wall Motors plans promotional activities in Germany this summer, and Changan Automobile has allocated additional budget for its European expansion. Some brands are experimenting with AI-driven technologies and social media campaigns—for example, XPeng has partnered with athletes. However, experts caution that online marketing alone is insufficient. High-visibility offline advertising and physical retail experiences are more critical for building consumer trust and raising brand awareness. According to Fassnacht, an integrated omnichannel brand strategy—combining both online and offline efforts—is essential for developing a mature and successful overseas brand.