Automotive industry is changing rapidly due to new technologies, such as connectivity, electrification, and autonomy. Even with government support and the growing economies of size, it is still very expensive to commercialise and develop these technologies. Battery electric vehicles (BEVs), with their low entry barriers to the market, make it difficult for even luxury car manufacturers to compete.
In such cases, it is obvious that brand differentiation becomes crucial, and automakers must therefore place a higher emphasis on design, aesthetics and visual appeal. “Design works. Because it translates what a brand is at its core—where it comes from, where it’s going, and what makes it unique,” said Michael Mauer, Head of Volkswagen Group Design. “People automatically relate to a brand through design because it communicates with them as an emotional language.”
VW Group and European carmakers have a long history of producing iconic cars such as the Porsche 911. The Jaguar E-Type. the Lamborghini Miura. and the BMW Z8. Mauer led the Porsche design team that was awarded the Red Dot Award: Design Team of the year in 2012. In 2019, his Ferrari counterparts won the same award under FlavioManzoni. Ferrari won 26 Red Dot Awards between 2015 and 2023. This is more than any other carmaker.
Consistency has been a key factor in the success of European automakers’ designs. For example, the Porsche 911’s basic structure hasn’t changed much through the years. BMW has used the kidney grille since 1933. And Ferrari’s motorsport DNA is generally reflected by the red color. These brands wouldn’t have been able develop their unique personality without such visual cues.
However, highlighting Europe’s aesthetic excellence does not imply that automakers from other regions are not coming up with memorable designs.
Some vehicles, like the Tesla Model 3 or the NIO ET7 from American and Chinese startups, are perfect examples of the sleek, minimalistic style that buyers today expect from high-tech luxury (thanks to Silicon Valley, Apple, and other tech giants). They have received many awards for their efforts. The Model 3 was Automobile magazine’s Design of the Year in 2018 and received an impressive 4.77 (out of 5) rating in Bloomberg’s Tesla Owners Survey. The NIO ET7 also won the Red Dot Product Design Award in 2021.
They understand that the importance of design to attract consumer attention is crucial. “Design is not an expense. Design is a fundamental investment for the growth of any company,” said Javier Verdura, Tesla’s Director of Product Design, in an interview with GeneXus. “I strongly believe that, without design, a company can’t move forward nowadays. What is offered to consumers has to be well thought out and carefully designed and must provide a pleasant experience.”
Having said that, Silicon Valley’s obsession with sophisticated minimalism did not deter Tesla from taking a bold and dramatic approach with the Cybertruck. The USD 60,000 pickup’s futuristic styling is polarizing and almost ostentatious, but it perhaps supports the notion that high-end brands are not supposed to appeal to everyone.
Incidentally, Tesla’s rival Lexus too had a similar idea in mind when it came up with the “Spindle Grille” over a decade ago. The conspicuous front fascia of the company’s cars alienated many customers, however, Toyota was eager to give its luxury marque a stronger personality after years of being criticised for “bland” design.
Such a strategy may not always work, but Lexus didn’t make design its core proposition anyway. Quality and durability have been the main focus. Both the J.D. Power Vehicle Dependability Study, and Consumer Reports Reliability Rankings. A more attractive design would undoubtedly aid in competing with the German establishment, but it is not going to take away the company’s focus from the more important aspects of product development.
Aesthetics alone can only get you so far. Many car companies have been successful in the design department, but growth has not been as rapid because of other problems.
Jaguar Land Rover. Though aesthetically alluring, JLR’s vehicles don’t exactly have a good reputation for quality, and its previous CEO, Thierry Bollore, said the company was losing out on 100,000 sales because of that. “The dissatisfaction of our customers was detrimental to our natural volume,” he observed.
Similarly, JLR’s compatriot Aston Martin has consistently produced exquisite supercars, but its market cap is less than USD 2 billion, whereas competitor Ferrari is valued at over USD 75 billion. It is due, in part, to the fact that Aston Martin has been somewhat “over-defined by James Bond” and lacks the racing pedigree of its Italian counterpart.
Make no mistake – design and aesthetics do matter. Especially in the luxury market, where they often persuade customers to spend far beyond the car’s functional value. Visual appeal is useless if it is not backed up by substance. It is important that car companies do not lose sight of the importance of their brand.
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