As the world’s leading car manufacturers gather in Geneva for the biggest event of the year – the Geneva Motor Show – global brand valuation and strategy consultancy
03 Mar 2015 | 4166 Views | By Autocar Professional Bureau
As the world’s leading car manufacturers gather in Geneva for the biggest event of the year – the Geneva Motor Show – global brand valuation and strategy consultancy Brand Finance has released its annual review of the state of their brands. Every year, Brand Finance puts thousands of the world’s ...
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As the world’s leading car manufacturers gather in Geneva for the biggest event of the year – the Geneva Motor Show – global brand valuation and strategy consultancy Brand Finance has released its annual review of the state of their brands. Every year, Brand Finance puts thousands of the world’s top brands to the test. They are evaluated to determine which are the most powerful, and the most valuable.
Toyota remains the world’s most valuable auto brand, with a brand value of US$35 billion (Rs 221,095 crore). However, brand value growth this year has been flat and Toyota is now at risk of being overtaken by all three major German auto brands.
Mercedes-Benz, BMW, and VW have benefitted from a rebound in demand in Europe and saw their brand values grow 13, 14 and 15 percent respectively over the last year.
BMW’s brand was also bolstered by the successful launch of the i8. BMW’s first attempt to bring the supercar into the 21st century has been met with rave reviews for its looks, driveability and innovative hybrid technology.
Mercedes has also strengthened its brand by reinforcing a reputation for technological innovation. The brand’s total dominance of the 2014 F1 season vindicated the decision to stick with the sport and was a PR and marketing coup.
The opposite is true of Ferrari. For several years, Ferrari has been the most powerful brand from any industry. However it lost that title this year, in part due to the inability of Scuderia Ferrari to even mount a serious challenge in last year’s F1 season. The sheen of glory from its 1990s golden era is beginning to wear thin. Meanwhile the departure of Luca di Montezemolo heralds a slight change in strategy at Ferrari’s road car division. Montezemolo kept a strict cap on production to maintain the exclusivity of the brand. Since his departure, chairman Sergio Marchionne has suggested that this policy will be relaxed to boost revenues.
Many Ferrari owners and aspiring owners are extremely brand-conscious, making the loss of the ‘world’s most powerful brand’ accolade, which Ferrari has held for several years, a particularly heavy blow. Ferrari is still in a strong position. It remains the most powerful auto brand and its brand value has actually increased 18 percent this year to US$4.7 billion. The new strategy to capitalise on the brand will certainly drive short term value but over-exploitation risks lasting damage.
Tesla is the sector’s top performer; its brand value has more than doubled, from US$1.2 billion in early 2014 to US$2.6 billion now. However, falling oil prices, reducing demand for electric vehicles, and recent stock price jitters make the coming year uncertain for the electric car manufacturer.
Indian OEMs move up the rankings
There are eight Indian brands in the Top 100 list, if one includes the Tata Motors-owned Land Rover and Jaguar, and all but one have moved up the global ranking from the previous year. Land Rover, which was No. 20 last year, is now 12th in 2015 rankings and Jaguar, which was 59th last year is now two places higher.
Tata Motors moves up to No. 39 from No. 42, while Maruti Suzuki India jumps 10 notches at No. 47. Mahindra & Mahindra, however, has slipped from No. 49 in 2014 to No 55 this year. Two-wheeler manufacturers Hero MotoCorp (up 5 notches to No. 69) and Bajaj Auto (up 7 points to No. 72) have done well in the overall rankings. Bringing up the rear is Ashok Leyland, which gained two rungs higher to No. 90 this year.
The world's 100 most valuable auto brands