From "being seen" to "being trusted", how can Chinese automakers truly win over Europe?

In early July, a cargo ship loaded with more than 6,800 Chinese electric vehicles set sail from Shenzhen to Europe. It is planned to dock at a port in Belgium and then sell the vehicles to various European countries. Along the shipping route from China to Europe, more Chinese electric vehicles are on their journey overseas.

Data shows that from 2020 to 2023, the number of electric vehicles imported by the EU from China increased nearly sevenfold. Nowadays, in Europe, one out of every five electric vehicles sold is made in China. The EU has quietly become the largest export market for Chinese electric vehicles.

However, it is obvious that the European market also presents many challenges, such as the incompatibility with local laws and regulations, consumers' implicit biases, as well as cultural and market differences.

For Chinese new energy vehicle manufacturers, how can they identify the potential challenges of going global to Europe? How can they successfully explore the European market? And how can they achieve long - term success locally? To answer these questions, Dongchedi and Juedongche, in collaboration with the Chinese version of Harvard Business Review, jointly launched the "Evolution of Going Global" series of videos. Starting from both China and Europe, they will visit the front - line of the industry, talk to overseas executives, and face European consumers to find the path for Chinese automakers' global evolution.

Why is Europe a must - go destination?

In the global expansion map of Chinese new energy vehicle manufacturers, the United States, Japan, South Korea, Southeast Asia, the Middle East, etc. are all important destinations, but many enterprises have set their sights on Europe. As Zhang Lin, the Chief Representative and General Manager of the German Association of the Automotive Industry (China), described: "Many domestic enterprises regard Europe as a battleground, just as mountain climbers always regard Mount Everest as their ultimate dream."

Of course, business decisions cannot be swayed by sentiment alone. Currently, considering aspects such as the market growth stage, policy environment, and the recognition and acceptance of Chinese products, the European market is a rather ideal destination for going global.

From a market perspective, in the first half of 2025, a total of 1.782 million new energy vehicles were sold in Europe, an increase of more than 340,000 compared with the same period last year, with a year - on - year growth rate of 23.7%. It maintains a certain advantage in market volume. Klaus Zenkel, the former vice - chairman of the European Union Chamber of Commerce in China, has long been committed to connecting businesses between China and Europe. In his observation, although the penetration rate of new energy vehicles in European countries still needs to be improved, due to the national - level planning for energy transformation, new energy vehicles have a relatively clear growth expectation. Many local manufacturers have promoted strategic transformation and increased their investment in new energy vehicles. Chinese enterprises hoping to explore the European market will also have an opportunity window. "The market is ready. It is a free market and is ready to embrace competition." Klaus Zenkel said.

From a policy environment perspective, although EU countries have relatively strict compliance requirements, they still have advantages compared with other developed markets. Wang Gao, the Deputy Dean of the China Europe International Business School and the Baosteel Chair Professor of Marketing, mentioned that Europe is generally a moderate political entity, and its policies are relatively stable. At the same time, the market volume is large, and the future market is relatively predictable. Therefore, among developed markets, Europe becomes a relatively better choice.

From the perspective of the acceptance of Chinese products, during the recording of this episode, Chris Pereira, the founder and CEO of North American Communications and our special host from Juedongche, went to the streets of the UK to explore the footprint of Chinese electric vehicles in Europe and their impression in consumers' minds. In the past, Chinese brands were often considered as cost - effective options, but in the new energy vehicle industry, some surprising voices are emerging. When asked about the impression of Chinese new energy vehicle manufacturers, a consumer blurted out: "What comes to my mind is technological leadership. They are really doing some exciting things."

In fact, the evolution of Chinese new energy vehicles is changing consumers' and the industry's views on Chinese brands. Zhang Lin recalled the scene of the 2023 Shanghai Auto Show and said that many German corporate executives came to China at that auto show: "We internally summarized it as an 'eye - open trip'. At that time, German automakers truly realized the amazing speed of the development of domestic new energy technologies, and in the following years, they also maintained high - frequency communication and learning."

With promising market growth, moderate and stable policies, and consumers and the industry beginning to recognize Chinese products and brands, with the support of various favorable factors, the European market seems to be a must - go destination.

Integrating into the European market starts with "systematic" compliance

Many people have heard that the European market has rather strict rules and standards, and European users also attach more importance to issues such as safety and privacy. In a street interview, a consumer mentioned that he is very concerned about whether the data generated when using new energy vehicles is properly and safely processed: "Every time I get in the car, I immediately connect my phone. If someone contacts me, the vehicle will also obtain relevant information. So I want to ensure that the data processing is safe and reliable."

Such ideas are not uncommon. According to Chris Pereira's observation, the European market has high compliance requirements, and local enterprises are also willing to slow down and conduct business on the basis of ensuring safety and compliance: "I have met many Germans. They are willing to spend three months, six months, or even a year doing nothing just to make sure everything is compliant and everything is ready. This is completely different from the working style of Chinese enterprises with strong execution ability and fast reaction speed." To truly integrate into the local market, the behavioral logic of Chinese enterprises may also need to converge to a certain extent.

Currently, many Chinese enterprises have realized the importance of compliance. Because in addition to basic industry regulations, there are also many regulations related to new energy vehicles in the local market, such as those related to sustainable development, human rights, and corporate governance.

Zhang Lin also mentioned a similar view. He said that the compliance requirements in Europe are systematic. In addition to the specification of specific product indicators, it also involves carbon footprint traceability, data security, etc. This means that enterprises need to fully consider various regulatory requirements from the initial stage of R & D and production to ensure that they and their supply - chain partners jointly deploy for compliance.

"In summary, compliance in Europe should be a long - distance run rather than a 100 - meter sprint." To run this long - distance race well, Zhang Lin suggested that Chinese enterprises do three things:

First, fully integrate with the local industry. For example, CATL has joined the German Association of the Automotive Industry, hoping to not only be an enterprise setting up a factory in Germany but also become part of the European supply chain and participate in the development process of the European automotive industry.

Second, full localization is required for business operations in Europe, and more attention should be paid to communication with the local industry, associations, and the government. Embrace supervision, actively participate, and even influence the rules. "Chinese enterprises have many cases and technological accumulations in the new energy vehicle industry, and also have a lot of experience to share with the rule - makers in European countries."

Third, establish a brand image through compliance measures. In this process, Chinese enterprises can refer to the practices of automakers from Europe, the United States, Japan, and South Korea. They usually carry out public welfare and green actions around the world and use this to conduct cultural dissemination. In fact, compliance is as important as compliance publicity. Klaus Zenkel mentioned that many Chinese enterprises would ask: "We have complied with the rules, why do the public still not trust us?" The problem is that although enterprises have complied with all the rules, they also need to conduct self - publicity.

And this also involves another important issue that Chinese new energy vehicle manufacturers need to pay attention to in the European market - how to build a brand.

From "being seen" to "being trusted"

Automobile brands in many countries have clear brand images. For example, German cars are known for their safety and reliability, Japanese cars for their fuel economy, and Italian cars for their romance and freedom. So, what kind of brand image do Chinese new energy vehicles hope to leave in the world?

Some overseas guests invited in this episode directly described the Chinese brands they saw in the European market. Chris Pereira mentioned that as soon as he landed in the UK, he saw a large - scale airport advertisement of BYD, and the slogan "Build Your Dream" could be seen in many places: "I really felt that good Chinese products had come to the UK." Klaus Zenkel was deeply impressed by the performance of Chinese automakers at various auto shows: "For example, at the Frankfurt Auto Show, the booths of Chinese brands are definitely the largest, there is no doubt about it." When he went to the Berlin International Consumer Electronics Show, all Chinese products were placed at the entrance, and the booths were large and eye - catching.

It seems that Chinese enterprises have made great efforts in overseas promotion. But what kind of impression will such promotion leave on local consumers? In the view of Professor Wang Gao, local consumers can clearly perceive that Chinese enterprises have come to sell products. However, this is not enough to establish in - depth brand perception and trust.

Zhang Lin mentioned the case of a Chinese automaker. This is a model that is very popular in China, targeting mainly young people aged 23 - 25. But after its launch in Europe, the enterprise found that the average age of local users was as high as 46. As a result, many digital functions designed in the model did not bring convenience to users. Instead, the enterprise received many after - sales requests because users did not know how to use these new functions. When the brand conducted in - depth research on the young consumer group, it found that these target consumers did not receive the brand information well, let alone understand the brand concept and product features.

Professor Wang Gao mentioned that although Chinese brands have carried out a lot of promotion overseas, there is still a lot of work to be done in establishing connections with the market and communicating with local consumers. Chris Pereira also mentioned: "Promotion can be done with money, but making friends requires actions and wisdom. So I think in the next few years, cross - cultural management and cross - cultural communication will be the themes in the European market." He further suggested "I suggest that everyone make friends with five groups and build trust with them: the government, customers, investors, associations and industry chambers of commerce, and overseas talents."

The European market has become a "battleground" for Chinese new energy vehicle manufacturers, and this journey overseas is also a long - term test of compliance, brand, and cross - cultural capabilities. From systematic compliance to local operation, from technological leadership to brand recognition, the global evolution path of Chinese automakers requires not only products and marketing but also a deep understanding and integration of the rules and cultural logic of the European market - such as the emphasis on privacy, the commitment to sustainability, and the respect for the business logic of "slow is fast".

Written by Liu Yue

Liu Yue is the Planning Director of the New Media Center of the Chinese version of Harvard Business Review

This article is from the WeChat official account "Harvard Business Review" (ID: hbrchinese), author: HBR - China, published by 36Kr with authorization.