Which Matters More for a Car Brand: Building Trust or Splurging on Technology?

Not long ago, I co-drove an engaging conversation with John Jörn Stech from The Auto Ethnographer on the dynamics of global car markets — exploring the trends and innovations driving the shift from conventional cars to EVs, and the resulting impact on global giants such as BMW Group, Mercedes-Benz AG, and Tesla. (If you haven’t listened to it yet, don’t miss it. Here is link: https://www.youtube.com/watch?v=prXpu8f4Ovk)

 Credit: Luciano Consolini

After that thought-provoking exchange, a long chain of questions began to unfold in my mind.

·      What truly makes the difference between car brands when consumers make their final purchase decision, a considerable investment for many households?

·      What makes a car brand stand out amid fierce competition?

·      Is innovation purely driven by technology, or are there deeper cultural and emotional factors behind consumer choices?

·      And how can Chinese car brands learn from legacy brands like BMW or Mercedes-Benz, or perhaps even the other way around?

I suddenly realized that the biggest hurdle Chinese EV brands face is not innovation, technology, or pricing point, areas where they already outperform many global competitors, but the trust they have yet to earn in brand building. In such a fiercely competitive market, what truly matters for a car brand?

·      Should it splurge on technology to create differentiation?

·      Or should it focus on building trust — the “soft power” of brand equity to win consumers by heart?

There’s no denying that technology is vital to a car brand’s survival. In today’s market, innovation, fueled by constant technological breakthroughs, serves as the industry’s lifeline, often centered on cost efficiency or experience enhancement.

For example, leading Chinese EV players such as BYD have gained significant advantages in raw materials, labor costs, and vertical integration through their relentless investment in technological innovation, making it almost impossible for others to compete on price, according to Rest of World.

Beyond that, cars as commodities have long been defined and normalized by technological advancement. It is primarily technological innovation that drives consumers to shift from gasoline vehicles to electric ones. Likewise, the rise of self-driving cars, moving from prototypes to large-scale deployment, is becoming a near-future reality, also powered by continuous breakthroughs in technology.

However, too much focus on technology will make the brand lose its vision and meaning of brand building, which is to make life easier and joyful. For instance, the overload of high-tech features in a car not only drives up costs but also leads to redundancy, leaving consumers confused and reluctant to use them.

Moreover, the polarized investment in technology can turn a brand into a kind of “Frankenstein”, distant from consumers rather than closer to them. This is the biggest hurdle facing the seemingly “unbeatable” Chinese EV brands today. For legacy car brand buyers, a Chinese EV brand still lacks credibility and trust, assets that can only be built over time through consistency and thoughtfulness in shaping brand image and personality. That means storytelling with sincerity, service with consideration, and communication in a more human tone, one that carries warmth and authenticity.

In the end, technology may decide a car brand’s fate, but trust determines its legacy and wins the hearts that keep it alive.