Sports sponsorships are just the start for Chinese EV brands

If you watched the Euros this year, it was hard to miss the perplexing “No.1 NEV Maker” slogans emblazoned around the perimeter of the fields.

Those ads belonged to BYD, China’s top New Energy Vehicle carmaker (a term used in the country to refer to electric cars) and signaled that the EV behemoth had well and truly arrived on the world stage.

But the ads also displayed the advertising ambitions of China’s roster of EV brands, who are now jostling for global expansion, turning to advertising to unseat legacy automakers and win over car buyers.

What this means

This intensifying competition between old and new guard will play out not only in price wars and tariffs, but on digital screens and billboards too.

“Increased media investment in global marketing is inevitable, because China's domestic automotive market is saturated, and the competition is extremely fierce. In this environment, many brands have chosen to export,” says Jason Du, GM, global brand marketing at Join-Cheer Digital Group, which works with Chinese EV brands on overseas marketing.

This brand-building phase will be key in positioning Chinese EVs as viable alternatives to the likes of Ford and Toyota in the minds of consumers, as more models, like the $10,000 BYD Seal, make their way around the world.

“In markets like Europe, Japan and the US, these new players come in and they don't have the brand history,” says Huu-Hoi Tran, managing director and global vice president at Capgemini Invent, China. “They have the superior product for now. But they also need to be able to integrate it into the thoughts of consumers in these different regions.”

The background

Leading the charge is BYD, whose exports are growing globally and are buoyed by high-profile sports sponsorships. Rivals like Nio, GWM, and SAIC-owned MG have also made inroads into European and British markets. Nio is also working on two more mass-market sub-brands, with one potentially aimed at the UK market.

This all adds up to UBS analysts predicting that Chinese automakers’ global market share could almost double to 33% by 2030, while Western carmakers’ share may fall to 58%.

For growth, some are turning to the Middle East, South America and Southeast Asia, with Brazil and Thailand emerging as top export destinations.

In their hunt for market share, Chinese EV brands have often turned to social media to gain brand awareness. The reasons behind this strategy are numerous, but according to Du, they largely come down to a focus on number of followers as the main KPI.

However, beyond social media, Du thinks there is much growth to be unlocked via open internet channels, especially when paired with live sports.

Case in point: live sports

As they ramp up advertising, acquiring that elusive “brand equity” among picky car buyers stands as one of Chinese EV brands’ biggest challenges.

“In Germany, where I grew up, a car is seen as a status symbol,” Tran says, “so you need to have a brand image, you need to be prestigious. You need to get into consumers’ hearts and minds.” Perhaps that’s why Chinese EV brands’ most visible global advertising efforts so far have centered around live sports.

BYD replaced Volkswagen on its home turf as the mobility sponsor of this year’s UEFA European Championship. That investment appears to be paying off: during the first weekend of the tournament, UK car buying site Auto Trader reported a 69% week on week increase for BYD searches on its site. In Europe, the audience for each broadcasted match can number in the tens of millions.

In Brazil, BYD’s sponsorship of the Copa America has worked particularly well in the soccer-loving South American nation. FAW Group will be sponsoring a star Chinese track and field athlete for the Paris Olympics. And Zeekr has signed up as a partner to the Diamond League, an elite athletics competition.

While sports sponsorships can drive considerable brand awareness, Du is particularly bullish on two as of yet largely untapped channels that can often go hand in hand with sports: connected TV (CTV) and DOOH. Legacy automakers themselves have already been using them to drive not only brand awareness, but also conversions.

“CTV ads can effectively reach people watching the event online, and DOOH ads can channel offline buyers to the nearest dealerships,” he says.

Looking ahead

As more Chinese EV makers enter global markets, the competition for car buyers is likely to involve advertising on more than just social media and live sports.

“With the increasing influence of Chinese auto brands in the world and the gradual improvement in localized teams, automakers will choose new communication channels,” says Du. “The open internet will be the ‘main battlefield’ for many automakers.”

“For Chinese auto brands, the next stage must be to explore how to grow sales. The number of followers will become a secondary indicator,” he adds.