In a manner similar to the 2017 Best Global Brands study, automakers have upped the ante in the Interbrand’s 2017 Best Indian Brands study.
In the global study – Interbrand 2017 Best Global Brands – automakers maintained their top dog status, as they did in 2016. This year, 16 auto brands – Toyota, Mercedes-Benz, BMW, Honda, Ford, Hyundai, Audi, Nissan, Volkswagen, Kia, Land Rover, Harley Davidson, Mini, and Ferrari – and one energy major – Shell – are well entrenched in the Top 100 most valued global brands. From India’s perspective, the Tata Motors’ owned Land Rover, which is part of Jaguar Land Rover family contributes, 80 percent to Tata Motors’ annual revenue, and is a part of the automotive firmament in this year’s list.
Now, this year’s best Indian Brands study is out and of the Top 40 brands, five of them are in the automotive domain. The Tata Group, of which Tata Motors is a big constitutent, has continued to hold the top position and is valued at Rs 739.44 billion. The Mahindra Group, of which UV maker Mahindra & Mahindra is a strong force, drives in at eighth position at Rs 169.15 billion valuation.
More than half of the best Indian brands came from five sectors: automotive (5), diversified (10), financial services (12), telecom (2), and technology (2). Automotive is one of the top growing sectors, leading the change is Maruti Suzuki India, which has posted a 19 percent increase in brand value versus 2016 to Rs 137.04 billion.
India's largest carmaker, which takes No. 12 position in the Top 40 brands, has a stranglehold over the passenger vehicle market with a 50.43 percent market share. It remains a powerful brand with its connect now growing to reach the premium segment through the recently launched Nexa channel.
Bajaj Auto, the largest motorcycle exporter from India, and the No. 3 motorcycle OEM after Hero MotoCorp and Honda Motorcycle & Scooter India, rides in at No. 14. Riding high on its family of brands like Pulsar and V, the Pune-based company is valued at Rs 116.68 billion.
Breaking into the Best Indian Brands study for the first time at No. 17 is iconic motorcycle manufacturer Royal Enfield with brand value at Rs 90.8 billion, riding on its successful year-on-year financial performance and branding efforts which has been consistently executed across touch points.
At No. 20 is Hero MotoCorp, whose brand connect is spread not only across its motorcycle and scooter products but increasingly in the sports domain.
Ashok Leyland, which is slugging it out with Tata Motors for supremacy in the critical M&HCV sector and also making gains in the I&LCV segment, is at No. 37 position valued at Rs 19.99 billion.
The Top 40 Indian Brands have a combined total value of Rs 4,755.7 billion, an increase of 5% from 2016. The Top 100 global brands have a combined total value of US $1,871,730 million, an increase of 4.2% from 2016.
Purpose, Technology and Brand key growth drivers
“The Best Global Brands understand that brands are the platform for growth. A quick look at the top growing brands confirms how outgrowing the now and hanging at the speed of life creates admirable value growth," says Ashish Mishra, managing director, Interbrand India.
He adds, "The top-growing best Indian brands too have begun to understand and demonstrate the levers that drive growth and value. Maruti Suzuki, the top-growing brand for the second year in a row, has done an exemplary job with Reliance, Kotak, JSW, HDFC and Ashok Leyland not far behind. Our analysis of the Best Global Brands reveals some simple truths. Truths that are useful for Indian Brands to consider while driving growth in our rapidly changing market.”
On being the top Indian brand for five consecutive years, Harish Bhat, brand custodian, Tata Sons, said, “Tata is a brand that is synonymous with leadership and trust. The Tata brand has a truly global reach, and a presence across diversified businesses. Over the past 149 years of its existence, the Tata Group has consistently kept the community at the centre of everything it does, in line with the vision of its founder, Jamsetji Tata. Simultaneously, Tata has remained relevant to every generation, powered by its pioneering spirit. These values make Tata a unique and powerful brand that is well regarded and much loved by all its stakeholders.”
On being one of the top growing brands this year, Jayant Acharya, director, Commercial & Marketing, JSW Steel, said, “JSW is known for its ambitious growth story as well as for its commitment to the nation. We have been able to take on challenging goals and convert them into reality, while ensuring inclusive growth in the communities we live in. Our initiatives in the sports and community streams have already established our impact beyond our immediate stakeholders. We are further strengthening our brand to bring positive transformation and prosperity to every life we touch.”
“We are living in one of the most exciting periods of change—societal, technological, industrial—that impacts every aspect of commerce and life,” said Gonzalo Brujo, CEO of Interbrand EMEA, Latam and India. “In this ever-shifting context, to grow, brands need to outgrow. Outgrow barriers, challenges, markets, competition, mindsets, technology and potential. Which is why businesses need brands more than ever. The Best Indian Brands understand this value in belief systems and purposes, and hence propel this change without losing the way.”
Methodology of the Interbrand study
Interbrand’s fifth annual report analyses how brands grow in a changing world, showing that using technology at scale to deliver intimate human experiences, will help drive economic growth value. This methodology was the first brand valuation method to become ISO certified.
The ranking is based on three key components that contribute to a brand’s cumulative value:
- The financial performance of the branded products and services.
- The role the brand plays in influencing customer choice.
- The strength the brand has to command a premium price or secure earnings for the company.
In a tough and competitive marketplace like India, the strength of a brand along with the connect of its products and services with the typical value-conscious customer will always pay off in the long run.
Recommended reading: Automakers up the ante in 2017 Best Global Brands study