Automotive Industry 2024

The annual report on the most valuable and strongest automobile, auto component & mobility brands

Brand Finance Automotive Industry 2024

Mercedes-Benz retakes pole position as world’s most valuable Automobiles brand, while BYD is the only Chinese brand in the top 25

Sustainable growth at the forefront: Mercedes-Benz leads with high-end focus amidst electric challenge

Mercedes-Benz has returned to pole position as the world’s most valuable Automobiles brand, boasting a brand value that climbed by 1% to reach $59.4 billion. This increment is reflective of a brand that has not only maintained its premium status but has also enhanced its operational and financial metrics. A noteworthy upgrade in its brand strength from 81.71 to 85.22, transitioning from an AAA- to AAA rating, underscores the brand's robust and improving health.

The keys to Mercedes-Benz's brand value success this year have been identified by Brand Finance researchers as being its adept cost control measures and a well-curated product mix, both of which have propelled its Earnings Before Interest and Taxes (EBIT) and revenues upward. This focus, particularly on high-end passenger cars and premium vans, has been instrumental in driving revenue growth without resorting to excessive expansion, demonstrating a sustainable approach to scaling. This is particularly important as the company (and many traditional European brands more broadly) is facing a significant challenge from Chinese electric car brands.

Beyond financials, Mercedes-Benz’s brand strength has seen an impressive increase, with Brand Finance research finding robust investment and equity alongside a surge in customer service satisfaction. This satisfaction is not just anecdotal; it is supported by data showing significant improvements across nearly all Brand Investment pillars. Mercedes-Benz has also witnessed strong growth in familiarity, consideration, and reputation. Although there were less pronounced increases in its Corporate Social Responsibility (CSR) hub, the overall brand perception remains overwhelmingly positive.

However, the picture is not without its challenges. The brand's performance metrics reveal a limited growth outlook, despite achieving a perfect score in price premium – largely due to new competitors in the electric car space. This suggests that while Mercedes-Benz commands a strong market position, its future growth may face constraints, potentially due to market saturation or competitive pressures.

Alex Haigh, Brand Finance Managing Director, said:

“Mercedes-Benz's strategy of focusing on premium segments and operational efficiency has fortified its brand value and financial success. With Brand Finance researching identifying increased brand strength and substantial investments in brand equity and customer service, Mercedes-Benz has reinforced its position as a leader in the luxury automotive sector. The challenge ahead will be to navigate limited growth expectations, leveraging its strong brand and premium pricing to sustain its market leadership in a competitive landscape.

Elon Musk's controversies impact Tesla's reputation, yet revenue growth persists

Tesla has suffered a significant fall in its brand valuation, witnessing a 12% decrease to $58.3 billion, losing top spot behind industry leader, Mercedes-Benz. Despite this decline in brand value, Brand Finance research has found that Tesla's brand strength has remained relatively stable, albeit marginally decreasing from 80.87 to 80.53, maintaining its AAA- rating. This stability in brand strength is crucial, indicating that Tesla's core brand remains robust, with high levels of familiarity and recommendation among its consumer base. These metrics suggest that Tesla continues to enjoy strong brand loyalty and advocacy, critical components for long-term success in the competitive automotive industry.

However, challenges have emerged that impact Tesla's brand perception and, subsequently, its valuation. Brand Finance researchers identified a moderate decrease in reputation, most likely linked to the controversial actions of its CEO, Elon Musk, which have had a negative impact on the brand's image. Additionally, Tesla's exposure to the Chinese market and the associated smaller long-term growth rate have also adversely affected revenue projections. Despite these obstacles, Tesla's revenue has seen significant growth, attributed to the expansion of its manufacturing operations which has enabled increased vehicle deliveries. This growth is further bolstered by heightened environmental subsidies in the USA, reflecting governmental support for electric vehicles. The combination of high growth predictions and current revenue levels underscores a very high brand performance for Tesla.

Eco meets elite racing passion: New Flyer and Cupra lead with groundbreaking brand value growth through diverse strategies

New Flyer has seen an extraordinary surge in its brand value, skyrocketing to three-and-a-half its previous value (up 250%) to reach USD646 million, a testament to the company's strategic positioning and the burgeoning demand for electric vehicles (EVs) in the public transport sector. The brand attributes this remarkable increase to its unique position in the EV bus market, coupled with strong commitments from British and Canadian Governments to fund public transport initiatives with EVs. These commitments have not only bolstered expectations of heightened demand but have also solidified New Flyer's dominance in these prospective markets. Furthermore, the expectation for growth in other export markets contributes to the optimistic outlook for New Flyer's brand. This trajectory underscores New Flyer's adeptness at leveraging global shifts towards sustainable transportation, positioning it as a leader in the transition to green public transport solutions.

Cupra's brand value has achieved a remarkable ascent, soaring by 152% to reach USD807 million, reflecting the brand's burgeoning prominence and appeal in the automotive sector. A significant factor contributing to this impressive growth has been the strategic activities at Martorell, particularly highlighted by the production of the limited edition CUPRA Formentor VZ5 Taiga Grey. Launched in the last week of June 2022, this exclusive offering was limited to just 999 units, making it a coveted item among enthusiasts and collectors. This limited edition was part of the broader production of 3,258 units of the CUPRA Formentor VZ5 throughout the year. This initiative not only underlines Cupra's capacity for innovation and exclusivity but also significantly bolsters its brand value, showcasing the company's adeptness at creating highly desirable and premium automotive experiences that resonate with a discerning customer base.

Luxury and legacy: Ferrari's stellar reputation and niche appeal drive powerful brand strength

Ferrari has demonstrated an exceptional performance in terms of brand value and strength, with its brand value surging by 43% to USD10.6 billion and achieving a brand strength index of 90.00, meriting an AAA+ rating and the title as the world’s strongest automotive brand. This remarkable growth is underpinned by robust forecasts that anticipate strong further revenue growth. Ferrari's profitability has seen rapid acceleration, particularly over the last two years, with its stock performance notably outstripping the market by a staggering 60% year-on-year. Brand Finance research has found that the brand's familiarity, recommendation, and reputation metrics are unsurprisingly stellar, reflecting Ferrari's prestigious status in the automotive industry. However, the consideration metric does not reach the same heights, which aligns with Ferrari's strategic niche product positioning – few consumers serious consider the purchase of a Ferrari. This nuanced dynamic underscores Ferrari's success in maintaining an exclusive appeal while expanding its brand value and strength, consolidating its position as a leading luxury automotive manufacturer.

Toyota's brand value has remained steady at USD52.7 billion, with a brand strength index of 89.01, earning it an AAA rating and the position of second-strongest brand in the ranking. Toyota’s brand strength index has seen a significant uplift by 3 points, a reflection of substantial improvements, primarily attributed to an increase in brand equity, where Toyota scores exceptionally well. Brand Finance has identified that this improvement is driven by high scores in familiarity, consideration, and recommendation, alongside a sustained increase in reputation, highlighting Toyota's robust presence and esteem in the global automotive market. Despite Brand Performance being identified as the weakest aspect of Toyota’s brand strength index score, declines in Toyota’s price premium have been counterbalanced by gains across all other metrics within the BSI framework.

Brand Finance research has identified that Toyota's website and apps have seen a significant increase in performance, enhancing the brand's digital footprint and customer engagement. While revenue has seen an increase, it has not been dramatic enough to cause a major shift in brand value. Future growth forecasts remain steady, indicating a stable outlook for the brand.

Local Indian brand Maruti Suzuki (brand value down 6% to USD2.4 billion) is the third-strongest brand in the automotive ranking, with a brand strength index of 87.50 and associated AAA rating.

Chinese automobiles brands strengthen alongside production growth

China’s automotive industry is entering a new era. Having overtaken Japan as the world’s biggest vehicle exporter in the first half of 2023, the industry has boomed in recent years, fuelled by strong global EV interest which is driving further investments and exports. Bearing testament to this interest, BYD (brand value up 20% to USD12.1 billion), the most valuable Chinese automobiles brand in our rankings, overtook Tesla in the fourth quarter of 2023 in electric car production numbers.

Although Chinese automobiles brands witnessed fluctuations in their brand values, Brand Finance research found that 19 of the 22 Chinese brands included in the 2024 Brand Finance Automobiles ranking achieved brand strength increases. One such example is Geely. The brand witnessed a reduction in its brand value, plummeting 46% to USD3.1 billion, but achieved a brand strength increase of 5.7 points to 77.01, with a corresponding AA to AA+ brand strength rating improvement. Brand Finance research found that Geely’s brand strength improvement can be attributed to better customer service scores and innovation scores. Additionally, improvements in Corporate Social Responsibility (CSR) hub scores have contributed positively to Geely’s BSI score. The brand's growth forecasts remain optimistic, having achieved the maximum score of 10.

Another example can be seen in Foton. Although Foton’s brand value decreased by 41% to USD935 million, this decline is multifaceted. Firstly, the decline was driven by a higher default risk which is attributed to its primary operation within a volatile Chinese market. Secondly, a downturn in Foton’s revenues played a role. This revenue drop is a consequence of the current economic headwinds facing China, coupled with intensifying competition in the automobile sector. Foton, like Geely, recorded big improvements in brand strength, increasing their brand strength index score 11.2 points to 72.23, with the corresponding brand strength rating improvement from A+ to AA.

The examples of Geely and Foton above underscore the prevailing trend among Chinese automobiles brands in our rankings this year, painting a message of brand strength resilience as they navigate an increasingly competitive and uncertain global market environment. The automotive industry, particularly in China, is at a crossroads, grappling with internal challenges such as economic fluctuations and fierce market competition, as well as external pressures including changing global market dynamics and consumer preferences. Strategies focusing on innovation, customer service and international market expansion could play pivotal roles in stabilising and enhancing automobiles brands’ value and strength.

Bosch is in pole-position of Auto Components with $14.6 billion brand value, while Motherson accelerates by 86%, revving up with acquisitions

Bosch is top and strongest Auto Components brand

Bosch's emergence as the most valuable and strongest Auto Components brand, with a valuation of USD14.6 billion, reflects its market presence and strategic brand management. The stability in its Brand Strength Index (BSI), subsiding slightly from 78.20 to 77.31, reflects a brand that has managed to maintain its stronghold amidst fluctuating market conditions. This stability, coupled with a commendable business performance last year, has provided a solid foundation for its valuation.

Brand Finance research identified several key areas of success for Bosch's brand strength. Bosch's performance in these metrics, including 'Brand I Admire' and 'Positive Contribution', indicates a growing public and industry respect for its brand ethos and contributions. This recognition is further supported by updates in the Familiarity and Consideration evaluation. These developments underscore Bosch's commitment to innovation, sustainability, and positive market impact, factors that are increasingly becoming determinants of brand strength and value in today's economy.

HYUNDAI MOBIS is the second-most valuable and fourth-strongest (brand value up 51% to $5.5 billion) brand

Hyundai Mobis has marked its position as the second most valuable brand in the Auto Components ranking with a remarkable 51% increase in brand value to USD5.5 billion, alongside a significant rise in its Brand Strength Index (BSI) from 63.91 to 71.92. This surge in brand strength and value is correlated with the company's strategic pivot towards becoming a software-oriented mobility provider. By committing over 1 trillion won (USD772.3 million) annually to research and development for three consecutive years, Hyundai Mobis is not just expanding its portfolio but also redefining its market position from a traditional car parts manufacturer to a leader in the future mobility ecosystem. This investment in R&D has spurred a wave of new patent applications and orders for core components, fuelling record-high performances year on year.

Brand Finance researchers found that Hyundai Mobis's financial performance provides solid backing to its rising brand value and forecasts. The company reported a 24.9 percent increase in operating profit for the fourth quarter, alongside a 29.1 percent rise in revenue, highlighting the growing demand for high-margin modules and core components for electrification. Sales in its mainstay module and core part business saw a 25.3 percent increase from the previous year, with electrification parts alone accounting for 9.68 trillion won in sales. These financial milestones are indicative of Hyundai Mobis's successful adaptation to market demands for electrification and its strategic positioning to capitalise on the shift towards electric and autonomous vehicles.

Last year’s leader was Denso, remains third-strongest (brand value up 11% to $4.9 billion)

Denso has solidified its standing as the third-strongest brand, witnessing an 11% increase in brand value to USD4.9 billion. This growth is underpinned by a notable rise in its Brand Strength Index (BSI) from 67.83 to 73.23.

Brand Finance’s brand's valuation of Denso identified significant impacts from foreign exchange fluctuations, which have affected its valuation in USD terms, although it's noteworthy that Denso's value in JPY has increased by 5%. This dichotomy underscores the impact of currency movements on global brands and their market valuations. Additionally, Brand Finance’s research identified a reduction in brand familiarity for Denso, slightly offsetting some of the increases in BSI.

Denso's strong brand value growth this year, driven by optimistic forecasts, demonstrates the company's ability to leverage its core strengths. The brand’s commitment to innovation, particularly in automotive parts and chips, alongside its ability to navigate external challenges, reinforces its brand strength and market position.

Fastest-growing and second-strongest was Motherson (brand value up 86% to $1.1 billion)

Motherson has emerged as the fastest-growing and the second-strongest brand in the Auto Components sector, achieving an exceptional 86% increase in brand value to USD1.1 billion. This remarkable growth is underscored by a significant leap in the Brand Strength Index (BSI) from 56.15 to 74.55.

The increase in Motherson’s brand value and strength can be attributed to two primary factors. In part, the growth of Motherson caused Brand Finance to research the brand in greater depth, a reflection of the enhanced recognition that the brand deserves. Further, and more substantially, the company has demonstrated impressive revenue growth year-over-year of over 20%, a self-evident testament to its operational success.

Continued revenue growth play a crucial role in Motherson’s increasing brand value, signalling confidence in Motherson's future performance. The successful integration of acquired entities such as SAS, Saddles, Rollon, and Ichikoh, illustrates Motherson's strategic expansion and its efforts towards unlocking the full brand value of these entities in the future. The additional revenue stemming from these strategic acquisitions has significantly contributed to Motherson's brand value increase. Despite a reported profit fall of 18% YoY to Rs 202 crore, revenue surged by 28%.

Uber remains the first cab on rank,
with Enterprise and Hertz well behind

Uber (brand value up 28% to $29.7 billion) retains top spot

Uber has achieved a significant brand value increase of 28% to USD29.7 billion this year, solidifying its position at the forefront of its industry. This growth is not just a testament to its financial success but also reflects a significant improvement in brand strength, with its score rising from 70.64 to 74.13. Such a leap indicates a robust enhancement in the brand's health and market position. Research by Brand Finance underscores this advancement, highlighting Uber's high and escalating familiarity among consumers, alongside growing consideration. Moreover, Uber is experiencing an increase in both volume and price premium, suggesting a strengthening in consumer preference and willingness to pay more for its services after years of loss-leading operations.

The overall brand value’s rise can be largely attributed to robust revenue growth and an improvement in brand strength. Even though forecasted revenue growth has moderated compared to previous projections, the company is now, for the first time, achieving a . This gives confidence that Uber’s brand has significant value, especially as the company pivots from a focus on growth to a focus on profitability.

The inclusion of two new components to the Brand Strength Index (BSI) structure—price premium acceptance and recommendation—has seen Uber excel, indicating strong consumer trust and endorsement of the brand. Furthermore, the resurgence of global tourism and the diminishing impact of the pandemic have spurred an increased demand for travel, benefiting Uber significantly. In response to rising demand, Uber's operating model allows for price adjustments, often leading to higher revenues from customers willing to pay more for priority services. This dynamic underscores Uber's adeptness at capitalising on market conditions to enhance its brand value and financial performance.

Alex Haigh, Brand Finance Managing Director, said:

“These developments showcase Uber's agility in navigating market changes and its ability to leverage brand strength for financial growth. The strategic adjustments in its business model, coupled with an acute understanding of consumer behaviour and preferences, have contributed to Uber's increasing brand value, making it a case study in brand and business management in the modern economy.”

Shifting Gears: Enterprise Accelerates Brand Value, While Hertz Takes the Eco Route

Shifting Gears: Enterprise Accelerates Brand Value, While Hertz Takes the Eco Route Enterprise (brand value up 66% to $12.8 billion) and Hertz (brand value up 27% to $4.7 billion) remained as the second and third most valuable brands in this sector.

This year, Enterprise's brand strength experienced a slight decrease, moving from 76.69 to 75.82. Brand Finance research attributed this dip to a minor fall in consumer familiarity with the brand and its Environmental, Social, and Governance (ESG)-related performance. However, it's notable that consideration for Enterprise surged, indicating that the brand is now rated extremely high in terms of consumer consideration. This mixed result in brand strength metrics suggests a nuanced picture, where research has found that specific challenges are offset by significant gains in different brand perception areas.

Despite the decline in brand strength, Enterprise's overall brand value saw a considerable increase, underpinned by stellar financial performance. Enterprise Holdings reported a turnover exceeding USD30 billion, a testament to its robust business model and strategic diversification in its mobility portfolio. This diversification aims to cater to a broad spectrum of customer needs, highlighting Enterprise's adaptability and innovative approach to service provision. Furthermore, the recovery of tourism post-COVID-19 has buoyed the car rental sector, with Enterprise benefiting significantly from the resurgence in travel and tourism activities. The company's ability to leverage the rebound in global travel showcases its market resilience and strategic foresight in navigating the pandemic's challenges.

Comparatively, Hertz's brand strength saw a marginal increase from 71.79 to 72.76, indicating a stable yet slightly improving brand perception in the market. The introduction of the recommendation metric, where Hertz performed well, alongside increases in familiarity and consideration, suggests positive consumer sentiment. However, challenges remain, particularly with the Hertz app, which has faced criticism from users despite promotional efforts. In a notable strategic pivot, Hertz obtained global attention for its decision to purchase 100,000 Tesla vehicles, yet more recently announced plans to sell off a significant portion of its electric vehicle fleet to reinvest in conventional gasoline-powered vehicles. This move, occurring within a short span and reflecting a drastic shift in strategy towards EVs, has garnered attention and may influence brand perception and strategic positioning in the evolving automotive rental market.

The fastest-growing brand is Bolt (brand value up 231% to $457 million)

Bolt has emerged as the fastest-growing brand in the mobility sector, with its brand value skyrocketing to more than triple last year’s value of USD138 million to USD457 million this year. This remarkable growth is underpinned by a modest increase in brand strength, from 63.58 to 64.2 and significant revenue growth. Despite the broader industry trend of rising costs for both equity and debt, Bolt has managed to decrease its discount rate by 1% through an increased proportion of debt funding. This strategic financial structuring has provided a cushion against the financial pressures that typically accompany such cost increases.

Brand Finance has attributed the improvement in Bolt's brand strength to the introduction of new components in the evaluation, areas where Bolt has shown commendable performance. The phenomenal increase in Bolt's brand value is primarily due to an impressive surge in revenue, with Bolt Technology's turnover increasing by 152% in 2022 to €1.26 billion. This financial achievement is significant, especially considering the company's operational losses, which were markedly reduced from over €547 million the previous year to €72 million in 2022. While the reduction in losses indicates improving operational efficiency and cost management, the continued operation at a loss raises questions about the sustainability of Bolt's growth trajectory and whether adjustments to the Residual Returns (RR) should be considered due to the negative margin.

Bolt's rapid brand value growth, combined with strategic financial management and operational adjustments, positions the company as a notable case study in brand development within the competitive mobility sector. The balancing act between aggressive revenue growth and the challenges of achieving profitability underscores the complexities faced by fast-growing companies in the digital and mobility marketplaces. As Bolt continues to evolve, the strategic decisions it makes in addressing its brand strength attributes and financial health will be critical in sustaining its growth momentum and achieving long-term profitability.

The strongest brand is Localiza (brand value up 90% to $2.3 billion) with extraordinarily fast growth

Localiza has established itself as the strongest brand in its sector, leading to extraordinary growth in brand value of 90% to USD2.3 billion. This significant enhancement in brand value is mirrored by a substantial rise in brand strength, with the Brand Strength Index (BSI) jumping from 66.41 to an impressive 78.47. Such a leap is indicative of Localiza's robust position in its key local Brazilian markets, bolstered by exceptional financial performance. The company's revenue growth has been described as nearly exponential, a testament to its operational efficiency, market penetration, and the positive reception of its services by customers.

The remarkable increase in Localiza's brand value is largely attributed to its stellar financial results, which have surpassed expectations. Analyst forecasts remain optimistic, reflecting confidence in Localiza's business model and its capacity for sustained growth. The assumptions underlying Localiza's valuation have shifted in a favourable direction, significantly enhancing the basis of its valuation. This reassessment is due to a combination of strategic business decisions, market expansion, and the company's ability to capitalise on emerging opportunities in the mobility sector.

The overall increase in Localiza’s brand strength is a result of several factors, including strong (and improving!) familiarity in its Brazilian market and a surprisingly high price premium evaluation. This Brand Finance research indicates that customers not only recognise and prefer Localiza over its competitors but are also willing to pay more for its services, suggesting a high level of brand loyalty and perceived value. The company's ability to command a price premium is particularly noteworthy in the competitive car rental and mobility industry, where price sensitivity is often a significant factor in consumer decision-making.

Localiza's success story is a combination of strategic foresight, operational excellence, and a deep understanding of customer needs and market dynamics. The company's substantial brand strength and valuation growth underscore its market leadership and the effectiveness of its business strategies. As Localiza continues to expand its footprint and diversify its services, its brand is set to remain a critical asset in driving future growth and maintaining its competitive edge in the global mobility landscape.