Toyota still world's most valuable brand

Toyota has maintained its position as the world’s most valuable automotive brand but its long-held stranglehold on the car industry is slipping, according to the latest 2020 Best Global Brands report from Interbrand.

The big automotive winners in this year’s report are Tesla and Hyundai, while Ford and Honda join Toyota as the biggest losers among the top 10 brands.

According to the report, Toyota’s brand value has fallen eight per cent over the past year to $US51.6 billion, narrowing the margin to Mercedes-Benz in second place on $US49.3bn (-3%).

BMW was in third place on $US39.8bn (-4%) while Honda tumbled 11 per cent to hold fourth on $US21.7bn.

Ousting Ford to make it into the top five for the first time in 15 years was Hyundai with a brand value of $US14.3bn – up one per cent on 2019, which makes it the only car-maker to record a positive result this year – while Tesla, which has not been seen in the rankings since 2017, was next best on $US12.8bn.

The study’s authors rate Tesla’s strong showing as further evidence that the US electric car brand is on a strong upward trajectory after overtaking Toyota in July as the world’s most valuable car-maker with a market capitalisation of more than $US200bn.

They say that, ultimately, Tesla has “forced change in one of the most inertial and largest-scale industries” and that although it will face stronger competition in the future, the brand still stands as “an exceptional case of leading from the future with absolute clarity of direction”.

“Tesla’s market capitalisation has risen 769 per cent in 12 months, its revenue has risen 10 per cent in six months and the production launch of the futuristic Cybertruck, as well as the launch of connected services and plans to roll out a ‘Tesla Network’ of self-driving robotaxis, has cemented the brand with its core customer group,” Interbrand says.

“Never mind that it [Tesla] made 370,000 cars against Toyota’s 10 million and a fraction of its revenues. There are industrial drivers behind this performance – most notably, a significant edge in battery technology and software.

“But these are the results of coherent moves – innovation, launches, adjacencies and, yes, buzz – inspired by a clear direction.”

Hyundai was jubilant with its rise through the ranks, which it says defies the recessionary market conditions caused by the COVID-19 pandemic and reflects its ability to adapt “to rapidly evolving market conditions to become a leader in future mobility”.

The company quotes Interbrand’s brand valuation global director Mike Rocha as saying that “Hyundai Motor Company’s brand value rise can be attributed to its substantial expansion of future mobility business and continuous investments in its brand, such as the announcement of its dedicated electric vehicle brand IONIQ”.

“We have positively valued the company’s active and proactive approach to the market changes as a sustainable brand, encompassing its expansion of online sales channels, rapid response to social contribution activities and actual increase in sales of battery-electric and fuel-cell electric vehicles,” Rocha said.

The top 15 automotive brands in the report are:
1. Toyota – $US51.6b (-8%)
2. Mercedes-Benz – $US49.3b (-3%)
3. BMW – $US39.8b (-4%)
4. Honda – $US21.7b (-11%)
5. Hyundai – $US14.3b (+1%)
6. Tesla – $US12.8b (N/A)
7. Ford – $US12.6b (-12%)
8. Audi – $US12.4b (-2%)
9. Volkswagen – $US12.3b (-5%)
10. Porsche – $US11.3b (-3%)
11. Nissan – $US10.6b (-8%)
12. Ferrari – $US6.4b (-1%)
13. Kia – $US5.8b (-9%)
14. Land Rover – $5.1b (-13%)
15. MINI – $US5.0b (-10%)

Outside automotive, Interbrand continues to rate Apple as the world’s most valuable car brand in overall terms at $US323bn (+38%), ahead of Amazon ($US200.7bn, +60%), Microsoft ($US166bn, +53%) and Google ($US165.4bn, -1%).

The ‘Best Global Brands’ report is based on three key components that contribute to a brand’s cumulative value. These are “the financial performance of the branded products or services, the role the brand plays in purchase decisions, and the brand’s competitive strength”.