Mercedes, Toyota and BMW top the list of Most Valuable Brands

News | March 15th, 2018 by 4
2018 BMW X4 Mercedes Benz GLC Coupe comparison 6 830x553

In its latest annual report, Brand Finance has named Mercedes-Benz as the world’s most valuable brand while Ferrari was named the strongest automotive brand. On …

In its latest annual report, Brand Finance has named Mercedes-Benz as the world’s most valuable brand while Ferrari was named the strongest automotive brand. On the top 10 most valuable brands list, Mercedes-Benz took the top spot following a 24 percent year-on-year growth to $43.9 billion. This is largely thanks to an increase in in forecast revenue as car sales increased by 9.9 percent to 2.3 million vehicles. Mercedes ranked third in last year’s rankings.

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Last year’s number one, Toyota, now lands in the second place with $43.7 billion (-6 percent) followed by BMW in third with $41.8 billion (+6 percent). Volkswagen kept its fourth spot with $33.7 billion (+35 percent) and Honda with $22.1 billion (+4 percent).

The other German premium makers, Porsche and Audi, are ranked seventh and ninth, respectively.

Brands that didn’t make the top ten list include Tesla, although Elon Musk’s company did see a 106% year-on-year growth to US$5.7 billion for the 19th spot.

To calculate brand values, Brand Finance uses the Royalty Relief approach, a brand valuation method compliant with the industry standards set in ISO 10668. The method involves “estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the open market.”

This involves calculating a brand’s strength using a balanced scorecard of metrics that assesses marketing investment, stakeholder equity and business performance – expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

Next, the royalty range is determined based on the importance of brand when it comes to purchasing decisions. This is then used to calculate the royalty rate together with the BSI. 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.

[Source: PaulTan]

4 responses to “Mercedes, Toyota and BMW top the list of Most Valuable Brands”

  1. mod9 says:

    I just don’t understand what people see in Aston Martin. I have never warmed to that brand.

    I just find their cars boring.

    • Senne says:

      That’s interesting. I never thought someone would call Aston Martin “boring”. I think it’s a great brand, one I could definitely own in the future, besides BMW. LOL I think they have really gorgeous, exciting GT cars that are also very quick and fun to drive. They use Mercedes tech inside, and therefore its infotainment is also pretty good and interior quality as well, compared to if they would not have partnered with a Premium brand like Mercedes. Same story with the engines.

      • disqus_8YchtRit8p says:

        I’m old so remember the DB David Brown/James Bond classics. Ford ruined the brand, they have never recovered. Foreign ownership & outside purchased tech don’t help. Back in the day Jags were feline, Astons were the British bulldogs (with Italian style). Since they went generic corporate with DB7 & XK8 they are unrecognizable. Sir William Lyons + David Brown > Ford PAG. Two great British labels now exist solely for foreign ownership to use them for marketing.

        • Senne says:

          I see your point, but I do think that cars like the Vantage and DB11 are very beautiful and from the reviews I’ve seen, they’re really good GT’s that are really fun to drive whilst being comfortable as well. I’d rather have a brand like Aston Martin or Rolls-Royce can become even better thanks to partnerships (or new ownership in case of RR), than to see them go bankrupt or fade away because they don’t have the money to keep developing and improving. Rolls-Royce would definitely not have been where they are now if it weren’t for BMW.

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