Starting in the early 2020s, several Chinese Original Equipment Manufacturers (COEMs) launched an ambitious initiative to penetrate the European automotive market, with Germany as a primary focus.
Germany, renowned as one of the world’s most sophisticated and competitive automotive markets, represents more than a geographic expansion; it is a rigorous test of these manufacturers’ global viability and strategic resilience.
By early 2025, however, COEMs continue to grapple with the complexities of the German market. Despite their obvious potential, they have struggled to align ambitious sales targets with actual performance, leaving billions of euros in potential revenue unrealised.
This whitepaper dissects the factors contributing to these challenges, offering an analytical lens to identify and address the barriers that hinder COEM success, leverage favourable factors in support of COEMs, and craft a winning strategy.
Leveraging the latest market data and industry insights, we examine the European and German automotive landscapes (Chapter 2) and assess the headwinds obstructing COEM progress (Chapter 3). We then explore the opportunities—or tailwinds—that could facilitate market entry and growth (Chapter 4). Building on these insights, we present a comprehensive suite of strategic recommendations tailored to help COEMs achieve sustainable success in Germany (Chapter 5). Finally, a forward-looking summary concludes the discussion (Chapter 6).
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