Mercedes-Benz is world’s most valuable car brand again, Ferrari strongest brand, says Brand Finance

Mercedes-Benz is world’s most valuable car brand again, Ferrari strongest brand, says Brand Finance

The latest Brand Finance annual report has once again named Mercedes-Benz as the most valuable car brand, while Ferrari has followed suit with a repeat performance of being the strongest automotive brand in this time – the two automotive brands have both held these respective accolades in 2018.

Of the top 10 most valuable brands, Mercedes-Benz sits at the top spot with a 7.8% growth, year-on-year to US$65 billion. The German marque’s customer service is the best in the business according to research by Brand Finance, while the brand has also been investing strongly in research and development in anticipation of new trends, particularly electric and autonomous vehicles.

This has kept it ahead of its main competitor, BMW which is ranked fourth this year with essentially holding value compared to last year, or US$40.483 million compared to US$40.501 million last year. For the runner-up position, Toyota has once again beaten Volkswagen to second place, the Japanese giant gaining 11.1% to US$58 million from US$52.3 million last year.

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Porsche rounds up the first half of the top 10 in fifth place with a 15.6% gain to US$33.9 million this year, while Honda in sixth place gained 28.6% to US$33.1 million this year. Rounding up the top 10 are Ford at US$18.5 million (-1.4%), Nissan at US$17.9 million (-4.5%), Audi at US$16.9 million (-13.6%) and Volvo at US$16.9 million (+20.3%).

Brand value is calculated by using the Royalty Relief approach, a method compliant with industry standards set in ISO 10668. The calculation involves estimating likely future revenues attributable to a brand by calculating a royalty rate for its use, in order to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market, says Brand Finance.

Brand strength is calculated by metrics assessing Marketing Investment, Stakeholder Equity and Business Performance, where this is then expressed as a brand strength index (BSI) on a scale on 0 to 100. The royalty range is then determined by the importance of the brand to purchasing decisions. This is then used to calculate the royalty range together with the BSI.

Mercedes-Benz is world’s most valuable car brand again, Ferrari strongest brand, says Brand Finance

After that, brand-specific revenues and forecast revenues are determined, before the royalty rate is applied. The tabulated brand revenues are then discounted post-tax to a net present value which equals the brand value.

Looking at brand strength alone, Ferrari once again topped the chart with a score of 94.1 this year, followed by Toyota with 85.5, Lamborghini with 84.8, Aston Martin with 83.9 and Honda with 83.0. Rounding up the top 10 on the BSI are Rolls-Royce (83.0), Porsche (82.7), Maruti Suzuki (82.4), Bentley (82.1) and Yamaha (81.9).

Brand Finance also tabled the top 10 most valuable automotive portfolios, which charts automotive groups of brands as a whole. On this list, Volkswagen sits at the top with a portfolio brand value of US$113.6 billion (+9.0%), followed by Daimler with a portfolio brand value of US$76.3 billion (+10.4%) and Toyota with a portfolio brand value of US$74.8 billion (+7.2%).

Other gainers on the top 10 portfolio brand value list are Honda at US$34.5 billion (+25.6%), General Motors at US$29.5 billion (+2.0%) and Groupe Renault at US$14.1 billion (+5.5%). Portfolios on this top 10 list which saw declines were the BMW Group at US$45.2 billion (-0.2%), Ford at US$19.6 billion (-3.9%) and Nissan Motor Company at US$18.9 billion (-4.8%).

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Park Eun on Mar 11, 2020 at 9:09 am

    from the 3 lists, combined points. Less is better

    Toyota – 2 + 3 + 2 = 7 points
    Honda – 5 + 5 + 6 = 16 points
    BMW – 6 + 4 + 4 = at least 14 points, if u consider RR
    Benz – 11? + 2 + 1 = at least 14 points

    Like or Dislike: Thumb up 1 Thumb down 5
  • Tahniah Mesidis, P1, Geely, Volvo, Lotus > all

    Like or Dislike: Thumb up 4 Thumb down 1
  • MeToo on Mar 11, 2020 at 12:03 pm

    Are you messing up Billions with Millions?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Khalid on Mar 12, 2020 at 1:37 am

    How come Perodua is not in the top 10 most valuable brand and the same goes for Mazda too despite everyone praising these brands like crazy

    Like or Dislike: Thumb up 2 Thumb down 3
  • Fareed on Mar 12, 2020 at 1:39 am

    Why nothing .mentioned about mitsubishi and Subaru?

    Like or Dislike: Thumb up 1 Thumb down 2
 

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