German premium car brands continue to enjoy high levels of trust internationally

• German premium manufacturers continue to set the standard internationally – Audi, BMW, Mercedes-Benz, and Porsche are most frequently named as premium brands in all core markets.
• Brand strength beats price – consumers accept a price premium of up to 20 percent for well-known premium brands, even for comparable product quality.
• Premium remains classic, but is complemented by digital – Workmanship, safety, and driving performance shape the perception of premium, while digital functions and AI are becoming increasingly important, especially for younger target groups.
• All points of contact with the brand determine premium perception – driving experience, service, and test drives are the key touchpoints for trust and differentiation.

Berlin, January 22, 2026

The German automotive industry is under considerable pressure. Transformation, high costs, and declining results characterize the public debate about the industry. However, customers continue to rate German car manufacturers positively as premium brands. This is shown by KPMG's "Global Premium Automotive Customer Experience Study" in Germany. Around three-quarters of consumers in the premium segment opt for established brands even when product quality is comparable – and accept price premiums of up to 20 percent. This underscores the continuing importance of brand strength and trust.

In all core markets surveyed – Germany, the UK, the US, and China – German manufacturers are most frequently named as premium brands. German brands continue to set the standard for premium quality. US brands follow at a distance, while Chinese suppliers are currently still hardly considered to have any premium competence. The current structural challenges facing the industry have not yet been reflected in a weakened perception of German manufacturers as premium brands.

Premium continues to be defined primarily by classic characteristics. Forty-four percent of respondents cite high-quality workmanship as a key feature of a premium brand, 43 percent cite a high sense of safety, and 42 percent cite driving performance. Sustainability aspects, on the other hand, currently play a subordinate role: only 12 percent of respondents cite environmental protection and sustainability as a defining premium feature.

At the same time, the expectations of younger target groups are changing. A total of 18 percent of respondents cite digital functions as a premium feature; among 18- to 34-year-olds, this figure is around twice as high across all markets as among older consumers. This is particularly evident in AI-supported personalization: in individual markets, such as the UK, it doubles the premium rating compared to the 35-66 age group.

It is not individual touchpoints, but the sum of all touchpoints with the brand that shapes its perception as a premium brand. It is crucial that quality and appearance are consistent across all touchpoints. Across all markets, the driving experience is the most important differentiating factor between premium and volume manufacturers: 38 percent of respondents cite it as a key driver of the premium experience. This is followed by service and maintenance (31 percent) and the test drive (28 percent). The test drive in particular proves to be a critical moment for the credibility of the brand promise. If technical defects occur or the support seems inadequate, this has immediate consequences: 45 percent of respondents lose confidence in the brand in this case, and another 30 percent express doubts about the quality of service.