Brand valuation and research group Brand Finance has published its latest annual review of the strongest and most valuable brands in the world, including 23 vehicle manufacturers which have been ranked among the top 500.
As defined by the report, brand value is equal to a net economic benefit that a brand owner would achieve by licensing the brand.
In calculating this value, Brand Finance uses the royalty relief approach, which it says “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’ as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.”
According to Brand Finance, Mercedes-Benz is the most valuable car brand in the world, with a value of $65.041 billion, up 7.2% from 2019.
Merc’s brand value was boosted by a 1.3% increase in sales to 2.34 million vehicles in 2019, Brand Finance said, noting that China remains Mercedes-Benz’s largest market, where the brand continues to grow in popularity, reporting a 6.2% increase in sales, with the luxury Mercedes-Maybach S -Class limousine being sold at a rate of over 700 cars monthly.
“Alongside reputation for premium quality, innovation is a key feature that sets Mercedes apart. The brand continues to reach for the stars, announcing plans for a new concept car based on the 2009 blockbuster film, Avatar,” it said.
These are the most valuable car brands in the world:
1. Mercedes-Benz ($65 billion)
2. Toyota ($58 billion)
3. Volkswagen ($45 billion)
4. BMW ($40 billion)
5. Mitsubishi ($37 billion)
6. Porsche ($34 billion)
7. Honda ($33 billion)
8. Hyundai ($20 billion)
9. Ford ($19 billion)
10. Nissan ($18 billion)
The rest of the car brands ranked in the Brand Finance 500 are as follows:
- Land Rover
The world’s strongest (car) brand
Aside from brand value, the Brand Finance report also looks at brand strength, where Ferrari takes the top spot.
Brand strength is used to determine what proportion of a business’ revenue is contributed by the brand. Alongside revenue forecasts, Brand Finance sees brand strength as a crucial driver of brand value.
While only ranked as the 17th most valuable vehicle brand in the world (and the 206th most valuable brand overall), Ferrari ranks as the strongest brand, globally, for the second year in a row.
“The embodiment of luxury, Ferrari continues to be admired and desired around the world, and its outstanding brand strength reflects this,” Brand Finance said.
“It is no wonder that many consumers who might never own a Ferrari car, want a bag or watch emblazoned with the Prancing Horse – but it is also crucial that the company management remain at the steering wheel of the brand’s future, and maintain its exclusive positioning by monitoring the licencing output closely.”