Chinese Automakers Pour Billions into Germany, Yet Struggle with Low Brand Recognition

In recent years, multiple Chinese automakers have continuously increased their marketing investments in the German market in an effort to boost brand awareness. However, according to a March 2024 survey covering 5,000 German respondents, the aided brand recognition of most Chinese car brands remains below 11%. Among them, newer entrants such as Changan’s Shenlan (Deepal) and Chery’s Omoda/Jaecoo have recognition levels of only around 1%, while Leapmotor and Lynk & Co stand at 11%—notably, Lynk & Co has already been operating in Germany for five years. BYD has achieved a brand recognition rate of 64%, largely thanks to its sponsorship of UEFA Euro 2024, while SAIC Motor’s MG brand leverages its historical legacy to reach 26% recognition. In contrast, Great Wall Motor, which entered the German market in 2022 through its Ora and WEY brands, has managed only 5% brand recognition, with local sales projected to remain under 2,400 units in 2025. Professor Martin Fassnacht of WHU – Otto Beisheim School of Management noted that new brands typically need to invest several hundred million euros in their first five years in Germany, with cumulative spending potentially reaching €1 billion over a decade. He emphasized that mere name exposure is far from sufficient; building a positive image and consumer trust is essential. Currently, some Chinese automakers are misjudging pricing strategies, with identical models often priced significantly higher in Germany than in China. To enhance their influence, Changan Automobile has allocated tens of millions of euros in additional budget, partnering with international media agency Mediaplus International to roll out an omnichannel marketing campaign. Great Wall Motor plans a large-scale promotional initiative in summer 2024 in collaboration with dealer O!Automobile. Industry experts stress that although AI and social media marketing are widely used, online tactics alone are insufficient to achieve breakthroughs. High-visibility offline advertising, physical store experiences, test drive services, and endorsements from authoritative media outlets remain critical to establishing brand trust. Successful overseas brand building requires seamless integration of online and offline resources, supported by a consistent, long-term brand communication strategy.