The State of Automotive Apps in Europe 2024

Key Takeaways:

• European motor vehicle app downloads surged to 16mn in 2023, up nearly 50% YoY. However, legacy carmakers predict a slowdown in sales in 2024 driven by increasing Chinese competition, EV incentives cuts for retail customers, and persistent high interest rates

  • Sensor Tower data shows the combined download growth for Audi, BMW, Fiat, Mercedes, Renault, and Tesla halved in the first two months of 2024 compared to the same period in 2023

  • Website usage data also suggests a shift in consumer attention in Germany. While average time spent on legacy automaker websites has declined by over 10% in February 2024 compared to May 2023, byd.com has seen a nearly 200% increase in the same period

• In 2023, Chinese EV automaker BYD, which held less than 1% of European app download market share, significantly boosted its brand presence, becoming the second-highest spender on EV advertising in Germany, surpassing Volvo and BMW. Meanwhile, BMW led auto downloads, topping the charts in eight countries, and Tesla captured 40% of Norway's market, highlighting its strength in the Nordics

• BMW has emerged as one of the top auto advertisers to users of major German automakers' apps. Between December 9, 2023 and March 7, 2024, Volkswagen app users in Germany were served 115% more impressions from BMW vs the prior 90 days, while Mercedes app users experienced a 26% increase

• With car sales decelerating, carmakers are pivoting their ad strategies. Mercedes is increasing its advertising investment in its high-performance AMG brand, accounting for 37% of its total ad spend so far this year (up 16ppts QoQ), while reducing emphasis on its electric EQ line

• Compared to BMW's UK ad campaigns, Mercedes-Benz's ads are distinctly targeting cash buyers, likely to resonate with consumers inclined towards outright purchases amid high interest rates

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