Consumers Prefer German Electric Car Brands for Purchases, Even in Foreign Markets - German auto manufacturers enjoy consumer trust among electric vehicle buyers, not just domestically, but globally.
German electric vehicle brands, such as Volkswagen and Mercedes-Benz, maintain a robust global reputation, but their superiority in trust isn't universal across the United States, China, France, and Germany compared to all competitors. However, these German manufacturers benefit from a decades-old brand image rooted in quality and engineering excellence, which provides them an advantage in the competitive EV market, particularly against challengers from China.
In a recent survey conducted by consulting firm BearingPoint, German brands led in trust in quality in all four markets, with a margin of three to seven percentage points over their second-placed competitors. The survey involved 2000 respondents in each country and was conducted in December and January.
Despite the clear lead, a closer examination of individual brands reveals a more nuanced picture. For instance, in China, BYD tops the list, but Mercedes-Benz, BMW, Volkswagen, and Porsche follow closely behind, outpacing both other Chinese brands and Tesla. In the United States, Honda leads in terms of trust, with Mercedes and BMW trailing closely behind. In France and Germany, Mercedes and BMW, or Mercedes and Audi, top the charts.
Interestingly, BYD performs poorly in Germany and France. Schuler attributes the lack of trust in Chinese manufacturers outside their home market to uncertainties about the manufacturer's longevity, service capacity, and data protection concerns.
As of the first four months of the year, Chinese manufacturers hold a relatively low market share in Germany. None of them reached even one percent. Yet, German brands seem to be capitalizing on their established reputation, with Volkswagen and Mercedes-Benz proving popular among German and French consumers.
"German manufacturers certainly benefit from their long-established brand image, especially with combustion engines," says Schuler. "This gives them a strong foundation in the competition with challengers, especially from China."
The success of German EV brands can be attributed to several factors. Their engineering prowess and quality standards have long been a hallmark of German automotive brands, extending to the electric vehicle segment. They are also continually investing in electric vehicle technology, solidifying their position as leaders in the EV market. Additionally, their extensive market presence, model variety, and strong sales performance further bolster their appeal.
Moreover, the acceptance of electric vehicles in Germany, despite the absence of purchase incentives, underscores the market's acceptance of German brands. However, it's essential to note that trust in EV brands can fluctuate based on geography and individual brands. For instance, Tesla is a global leader in the EV market, especially in the United States, while BYD is emerging as a significant player in China and other markets.
In conclusion, while German brands enjoy a robust global reputation, they do not necessarily lead in trust across all regions when compared to every manufacturer. Brands like Tesla and BYD are also networking globally. This highlights the dynamic and competitive nature of the EV market, as players jostle for position in various regions based on factors such as technology, brand image, trust, and market-specific factors.
- The community policy could focus on enhancing the trust in German electric vehicle brands, particularly in regions where competitors like Tesla and BYD are leading, by addressing concerns about the longevity, service capacity, and data protection of Chinese manufacturers.
- Vocational training programs in the technology sector could be implemented to equip workers with the skills necessary to develop and maintain the advanced electric vehicle technology that German brands are continually investing in, helping them maintain their position as leaders in the EV market.
- Finance, energy, transportation, automotive, and industry sectors could collaborate to establish sustainable infrastructure for electric vehicles, such as charging stations, to support the growing demand for electric vehicles and the success of German EV brands in the global market.
