Automotive News Europe — 2026-04-06
Automotive Industry
Chinese automakers are spending hundreds of millions of euros on marketing campaigns in Germany — but the investment may not pay off.
Despite years of effort and high-profile sponsorships, most Chinese brands remain virtually unknown to the country’s car buyers, with recognition rates below 11 percent in Europe’s most competitive market.
Establishing a brand in Germany requires several hundred million euros in the first five years and up to €1 billion over a decade, according to Martin Fassnacht, a marketing professor at WHU–Otto Beisheim School of Management.
For new entrants, the investment is unavoidable: Consumers will not consider buying a vehicle without first recognizing the brand, and familiarity alone is not enough — automakers must also build positive associations.
“Many consumers may have heard of Chinese manufacturers, but only a few can name one,” Fassnacht said.
BYD, MG are better known than their Chinese rivals
The challenge facing Chinese brands was underscored in a survey conducted by the German polling insititute Civey and Automobilwoche, Automotive News Europe’s German language sister publication.
Awareness of newer Chinese brands such as Changan’s Deepal and Chery’s Omoda and Jaecoo is about 1 percent. Leapmotor and Lynk & CO fare slightly better at 11 percent — a modest result considering Lynk & CO has operated in Germany for five years.
BYD stands out, with 64 percent recognition, boosted by its high profile sponsorship of the UEFA European soccer tournament in Germany in 2024. MG, a historic U.K. brand now owned by SAIC, is recognized by 26 percent of consumers, helped by its British heritage that still has resonance in Germany.
The poll, which was carried out among 5,000 German residents in March, measured prompted brand awareness.
Fassnacht said a brand typically needs at least 20 percent unaided recall to be considered established, highlighting the long road ahead for Chinese entrants.
Chinese brands misjudged German market
Chinese brands face a highly competitive German market dominated by strong domestic players including Volkswagen, BMW and Mercedes-Benz, while starting from a low awareness base — a “double challenge,” Fassnacht said.
Brands without strong emotional appeal must compete on price, Fassnacht said, arguing that some Chinese companies have misjudged the German market by positioning vehicles too high.
“I have never understood why Chinese manufacturers price their vehicles so high in Germany when they are significantly cheaper in China,” Fassnacht said.
Lesser known Chinese automakers are now accelerating their marketing efforts to win over German buyers.
Great Wall Motor plans a summer marketing push in partnership with importer O!Automobile, part of Emil Frey Group. Since launching its Ora and Wey models in Germany in 2022, Great Wall has achieved only 5 percent brand recognition. The company sold fewer than 2,400 vehicles in Germany in 2025.
Changan Automobile is also ramping up spending, allocating a double-digit million-euro budget to a European campaign spanning traditional and digital media. Mediaplus International is supporting the effort to position Changan as a leading electric mobility player in the region.
Using AI and social media is not enough
Automakers are increasingly turning to artificial intelligence to optimize marketing, using data-driven tools to identify which channels generate sales and where incremental impact can be achieved.
A clear brand proposition is critical, particularly for new entrants seeking to communicate their strengths.
“Equally important is consistent, recognizable communication,” said Johannes Trüdinger, general manager at Mediaplus International. Repetition of core messages, visuals and design over time helps embed a brand in consumers’ minds.
Some brands are relying on social media campaigns such as Xpeng’s current initiative that features international athletes showcasing their skills alongside a vehicle.
Industry experts caution that digital campaigns alone are unlikely to deliver results. Broad-reach formats such as video and outdoor advertising remain critical for visibility, while consumer trust is built through dealership interactions, test drives, media coverage and word-of-mouth recommendations.
“The belief that digital media investment is enough is a misconception,” Fassnacht said. “Brand management is becoming increasingly complex, and so are the solutions. A hybrid approach is essential for building a successful brand.”