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2020
The annual report on the most valuable and strongest automobile, tire, auto
component & car rental services brands
March 2020
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Brand Dialogue
29 countries and 10 sectors covered
Brand Dialogue is a public relations agency developing
communications strategies to create dialogue that More than 50,000 respondents surveyed annually
drives brand value. Brand Dialogue has over 25
years of experience in delivering campaigns driven
by research, measurement, and strategic thinking
Key metrics across all industries and brands
for a variety of clients, with a strong background in
geographic branding, including supporting nation B2B and B2C results
brands and brands with a geographical indication (GI).
Brand Dialogue manages communications activities
We are now in our 4th consecutive year conducting the study
across Brand Finance Group's companies and network.
Brand Exchange
Brand Exchange is a contemporary and exclusive
members' club and events space nestled in the heart of
the City of London. It was launched in 2015 to provide
members with a private space to network and socialise.
The club has since held several prestigious events
and welcomed many key figures in the marketing and
finance sectors as speakers. The membership brings
together senior professionals from the world's strongest
and most valuable brands.
VI360
VI360 is a brand identity management consultancy
working for clients of all sizes on brand compliance,
brand transition, and brand identity management. VI360
provide straightforward and practical brand management
that results in tangible benefits for your business.
Most Valuable
David Haigh
As a result, marketing teams struggle to communicate the value of their work and
CEO, Brand Finance
boards then underestimate the significance of their brands to the business. Sceptical
finance teams, unconvinced by what they perceive as marketing mumbo jumbo,
may fail to agree necessary investments. What marketing spend there is, can end up
Auto Brand.
poorly directed as marketers are left to operate with insufficient financial guidance
or accountability. The end result can be a slow but steady downward spiral of poor
communication, wasted resources, and a negative impact on the bottom line.
Brand Finance bridges the gap between marketing and finance. Our teams have
experience across a wide range of disciplines from market research and visual
identity to tax and accounting. We understand the importance of design, advertising,
and marketing, but we also believe that the ultimate and overriding purpose of + Mercedes most valuable auto brand for 3rd year
brands is to make money. That is why we connect brands to the bottom line.
running, hitting US$65bn mark
By valuing brands, we provide a mutually intelligible language for marketing and
finance teams. Marketers then have the ability to communicate the significance of + Land Rover, Bentley, Aston Martin and Jaguar all fall in
what they do, and boards can use the information to chart a course that maximises
profits. Without knowing the precise, financial value of an asset, how can you
brand value, marking a bad year for UK car manufacturers
know if you are maximising your returns? If you are intending to license a brand,
how can you know you are getting a fair price? If you are intending to sell, how do + Tesla is fastest growing brand in auto industry (up
you know what the right time is? How do you decide which brands to discontinue, 65%), boosted by new Chinese factory
whether to rebrand and how to arrange your brand architecture? Brand Finance has
conducted thousands of brand and branded business valuations to help answer
these questions. + Traditional car brands that are embracing electric vehicles,
like Porsche and its Taycan model, doing best in ranking
Brand Finance’s research revealed the compelling link between strong brands and
stock market performance. It was found that investing in highly-branded companies
+ Sweden overtakes Italy as 6th most successful nation in
would lead to a return almost double that of the average for the S&P 500 as a whole.
terms of brand value as Volvo embraces electric vehicles
Acknowledging and managing a company’s intangible assets taps into the hidden
value that lies within it. The following report is a first step to understanding more about + Ferrari continues to be strongest brand in Brand
brands, how to value them and how to use that information to benefit the business.
Finance Auto 100 ranking (BSI 94.1/100) as it tries to
The team and I look forward to continuing the conversation with you. increase exclusivity
6 Brand Finance Automotive Industry March 2020 brandfinance.com brandirectory.com/automotive-industry Brand Finance Automotive Industry March 2020 7
Executive Summary.
Executive Summary.
🇩🇪
FCA portfolio, it has so far successfully embarked on Top 10 Most Valuable Brands
its plan, unveiled in 2018, to broaden the brand into
different segments and expand plug-in hybrid and
electric options for the brand’s customers. 1 01
🇯🇵
Land Rover, however, has not been as successful – falling 2019: $60,355m
16% in brand value to US$7.6 billion – hit by sluggish growth
worldwide and in China, where it has invested heavily.
2 02
🇩🇪
2019: $52,291m
The growth of electric vehicles is probably the most
important trend in this year’s ranking with electric-
only brands recording some of the fastest growth and
3 03
almost all the major marques launching electric ranges. 2020: $44,897m +7.6%
🇩🇪
2019: $41,739m
Tesla is racing ahead as the fastest-growing brand in
the ranking, up an impressive 65% to US$12.4 billion.
The electric vehicle innovator has rapidly widened its
4 04
Mercedes in pole position again footprint, with sales now in China, Australia, the UK, 2020: $40,483m -0.0%
🇩🇪
Mercedes-Benz has stayed one and several markets in Eastern Europe. There have, 2019: $40,501m
For the third consecutive year, Mercedes-Benz is the however, been concerns of achieving production
step ahead of its competitors
world’s most valuable automobile brand, growing 8%
to US$65 billion. The German brand has been investing because of its commitment to
targets, but the announcement of a new factory – partly
supported by the Chinese government – in Shanghai
5 05
🇯🇵
2019: $29,347m
electric and autonomous vehicles – as well as implementing
innovative new business models, including the recently development. Despite his
expanded Mercedes Collection subscription service.
departure, Dieter Zetsche has Brand Value over Time 6 06
According to Brand Finance’s research, its customer set the brand up for long-term 80
2020: $33,102m +28.6%
🇺🇸
2019: $25,744m
service is the best in the business. That, combined with success.
7
its new and existing model ranges and its excellence in
design, is helping keep the brand one step ahead of its Alex Haigh 28
main competitor BMW (brand value US$40.5 billion). Director, Brand Finance 60
2020: $18,515m -1.4%
Unfortunately for BMW, the brand’s witty social media
🇯🇵
2019: $18,772m
response to the departure of Mercedes’ CEO was not
8
enough to generate growth this year.
29
USD bn
40
Volkswagen beaten by Toyota once 2020: $17,916m -4.5%
more
🇩🇪
2019: $18,753m
9
For the second year running, Toyota’s brand value
20
– helped by stronger growth in Asia – has grown 17
faster than Volkswagen’s, up 11% to US$58.1 billion 0
2020: $16,973m -13.6%
compared to 8% to US$44.5 billion.
🇸🇪
2019: $19,638m
● Mercedes-Benz ● Toyota
2019 2020
10 0 10
position to capture market share in the world’s biggest to US$1.6 billion) have all fallen in brand value this Brand Value Change 2019-2020 (%)
market for electric vehicles. year. Maserati has seen itself unable to keep up with
customer trends and thus has seen continuous drops in Tesla +64.9%
NIO – China’s domestic answer to Tesla – features sales volume.
Song +63.5%
in the ranking for the first time claiming 64th position,
with a brand value of US$1.1 billion, following stellar Aston Martin’s struggle to meet investor expectations Jeep +62.2%
growth this year. Sales are growing fast, but the brand on model production and delivery, and the delay on
RAM Trucks +31.3%
is struggling with high initial operating and investment the roll-out of Bentley’s Continental GT range, weighed
costs and it is likely to be some time before it is clear if down respectively on these brands. Honda +28.6%
the brand can meet Tesla’s success.
Mitsubishi Motors +25.3%
Lamborghini’s brand value this year, however, has
Even Porsche, the most commercially successful luxury increased 12% and it is expected to grow exponentially Scania +21.1%
car brand and the fastest growing car brand in the top 5, thanks to the incredible jump in sales experienced
Volvo +20.3%
is becoming electric. It is futureproofing and cementing by the brand on the Urus model, which accounted
its strong position with the launch of the Taycan, making for roughly 60% of overall sales volume. The Urus Tofas +19.8%
the brand the first traditional luxury car manufacturer to demonstrates that the SUV trend does not look likely to
Kia +18.7%
launch a fully electric model. Porsche has seen some of abate soon.
the fastest long-term growth of any brand in our ranking, -27.1% Maruti Suzuki
built off sports cars and later SUVs and similar models. Ferrari has also achieved solid growth, recording a 9%
-28.0% Yutong
It is testament to the brand’s strength and wide appeal increase in brand value to US$9.1 billion.
that its move to sports electric vehicles is one of the -29.3% Dodge
most hotly anticipated new models this year. Slowing growth in China but Song -30.5% Paccar
stands out
Mixed results in luxury cars -30.5% Dongfeng
Overall, Chinese automobile brands have fallen in brand
-33.0% MAN
Bentley (down 24% to US$1.7 billion), Maserati (down value by just under US$1 billion caused by slowing growth
44% to US$1.6 billion) and Aston Martin (down 50% – something the Coronavirus is sure to exacerbate. -33.7% Lincoln
-34.0% BAIC
However, 2020 saw strong performances by Song,
Brand Value by Country Changan, Great Wall and Roewe. Song has -43.7% Maserati
benefited from the stellar success of its Song Max
-49.5% Aston Martin
model, launched in 2017, and its brand value has risen
by 63% to US$959 million. Changan and Great Wall
– primarily SUV-focussed brands – have continued to
Brand Value grow as their model specialism remains popular. Roewe Electric car brands and
Country (USD bn) % of total performs strongly, a result of the brand’s commitment to
embracing electric and hybrid models effectively.
electric models from existing
● Germany 205.8 36.4%
brands are the most
● Japan 150.5 26.6%
Sweden overtakes Italy in total
brand value
interesting and dynamic part
● United States 73.3 13.0%
Country
BV
2020 (bn)
BV
2019 (bn)
Absolute
Growth
%
Change 1 01
3.3%
2020: $113.6b +9.0%
🇩🇪
Germany $205.8 $199.3 +6.5 2019: $104.2b
🇯🇵
2019: $69.1b
🇩🇪
2019: $69.8b
4
Sweden $19.5 $16.2 +3.3 20.2%
04
Italy $16.7 $18.1 -1.4 -7.5% 2020: $45.2b -0.2%
🇯🇵
2019: $45.3b
Others $50.7 $51.4 -0.7
5
-1.3%
26
🇺🇸
2019: $27.4b
🇺🇸
BV BV % 2019: $29.0b
Brand 2020 (bn) 2019 (bn) Change
🇯🇵
2019: $20.4b
Daimler $76.3 $69.1 10.4%
🇨🇳
Toyota portfolio $74.8 $69.8 7.2% 2019: $19.9b
9
Renault $14.1 $13.3 5.5%
2 13
GM $29.5 $29.0 2.0%
2020: $18.0b +16.2%
🇫🇷
2019: $15.5b
BMW Group $45.2 $45.3 -0.2%
reputation. Alongside revenue forecasts, brand Additionally, Toyota this year has the second strongest 2020: 94.1 AAA+ -0.8%
🇯🇵
strength is a crucial driver of brand value. According BSI at 85.5, jumping four spots in the ranking from 2019: 94.8 AAA+
to these criteria Ferrari has retained its position as the last year. Well known as a reliable family car, its
world’s strongest automobile brand with a BSI score of
94.1 out of 100 and a corresponding AAA+ elite brand
balance between innovation, quality and mass market
appeal is the perfect recipe for success in their key
2 2 6
strength rating. segments as is shown by improving scores in customer 2020: 85.5 AAA +0.5%
🇮🇹
2019: 85.1 AAA
recommendation and brand reputation.
Ferrari announced five new models in 2019, including
the SF90 Stradale and Ferrari Roma, both aimed at
new market segments. The company also established
Daihatsu is working on establishing the Daihatsu
brand and to solidify its business foundations while
3 1 2
a manufacturing agreement with the Giorgio Armani operating its business with a focus on MONODUKURI 2020: 84.8 AAA -2.1%
🇬🇧
2019: 86.6 AAA
Group to help push Ferrari collections into a more (a concept for auto manufacturing embodying
premium space. For years, Ferrari has utilised Daihatsu's unique value.) and KOTODUKURI
merchandise to support brand awareness and diversify
revenue streams but are now taking steps to preserve
(increasing points of contact with customers and local
communities in a way that is unique to Daihatsu.)
4 1 3
🇯🇵
2019: 86.3 AAA
reduce current licensing agreements by 50% and The brand this year saw its brand strength growing
5
eliminate 30% of product categories. impressively thanks to increased awareness,
recommendation and loyalty in key markets, as well 2 19
Honda makes the top 10 this year as their BSI has as having improved its innovation focus maintaining
2020: 83.0 AAA- +5.8%
increased by 4.5 points to 83. Honda is starting to high quality perception. The ability to access Toyota's
🇬🇧
2019: 78.4 AA+
reap the benefits of the better product and customer advanced technologies such as electrification of
6
experience that their assistant vice president Tom power trains, autonomous driving technologies and
Peyton envisaged in 2018. Customer preference connected tech, seems to be giving to the mini vehicle 1 5
and recommendation have increased substantially company a competitive edge versus the competition in
2020: 83.0 AAA- -2.6%
according to our research. This strong performance is the years to come.
🇩🇪
2019: 85.2 AAA
🇮🇳
2019: 86.0 AAA
power stretches across its
sports fans and across luxury
car owners. Pulling back from
8 0 8
🇯🇵
2019: 83.1 AAA-
revenue.
Alex Haigh 10 2 12
Director, Brand Finance 2020: 81.9 AAA- -0.6%
2019: 82.4 AAA-
Brand Finance
Auto 100 (USD m).
Top 100 most valuable auto brands 1-50 Top 100 most valuable auto brands 51-100
2020 Brand 2019 2020 2019 2020 Brand 2019 2020 2019
2020 2019 Brand Value Brand Brand Brand 2020 2019 Brand Value Brand Brand Brand
Rank Rank Brand Country Value Change Value Rating Rating Rank Rank Brand Country Value Change Value Rating Rating
1 1 0 Mercedes-Benz Germany $65,041 +7.8% $60,355 AAA- AAA- 51 54 2 Citroën France
2 2 0 Toyota Japan $58,076 +11.1% $52,291 AAA AAA 52 44 1 Bentley United Kingdom
3 3 0 Volkswagen Germany $44,897 +7.6% $41,739 AA+ AA+ 53 51 1 Iveco Italy
4 4 0 BMW Germany $40,483 -0.0% $40,501 AAA- AAA 54 30 1 Aston Martin United Kingdom
5 5 0 Porsche Germany $33,911 +15.6% $29,347 AAA- AAA 55 48 1 Hero India
6 6 0 Honda Japan $33,102 +28.6% $25,744 AAA- AA+ 56 37 1 Maserati Italy
7 8 2 Ford United States $18,515 -1.4% $18,772 AA+ AA+ 57 58 2 Dacia Romania
8 9 2 Nissan Japan $17,916 -4.5% $18,753 AA+ AA 58 63 2 McLaren United Kingdom
9 7 1 Audi Germany $16,973 -13.6% $19,638 AAA- AAA- 59 61 2 JAC Motors China
10 10 0 Volvo Sweden $16,914 +20.3% $14,063 AA AA+ 60 64 2 Roewe China
11 11 0 Chevrolet United States 61 53 1 Acura Japan
12 18 2 Tesla United States 62 66 2 Foton China
13 12 1 Renault France 63 69 2 Seat Spain
14 14 0 Hyundai South Korea 64 - 3 NIO China
15 13 1 Lexus Japan 65 59 1 Dodge United States
16 16 0 Ferrari Italy 66 57 1 Lincoln United States
17 17 0 Subaru Japan 67 60 1 Dongfeng China
18 15 1 Land Rover United Kingdom 68 86 2 Song China
19 21 2 Suzuki Japan 69 70 2 Kenworth United States
20 19 1 Geely China 70 68 1 Infiniti Japan
21 20 1 Buick United States 71 72 2 Sinotruk China
22 24 2 Kia South Korea 72 76 2 Changan China
23 23 0 Cadillac United States 73 74 2 Great Wall China
24 40 2 Jeep United States 74 67 1 Baojun China
25 25 0 Peugeot France 75 65 1 Yutong China
26 32 2 Mahindra India 76 81 2 Wuling China
27 29 2 Haval China 77 77 0 Peterbilt United States
28 28 0 Mazda Japan 78 - 3 Ashok Leyland India
29 35 2 Polaris United States 79 73 1 Oshkosh United States
30 26 1 BYD China 80 83 2 Chrysler United States
31 38 2 Isuzu Japan 81 79 1 DAF Netherlands
32 39 2 Skoda Czech Republic 82 85 2 TVS India
33 33 0 Mini United Kingdom 83 82 1 Vauxhall United Kingdom
34 22 1 Maruti Suzuki India 84 75 1 GAC China
35 46 2 Scania Sweden 85 90 2 KTM Austria
36 34 1 Jaguar United Kingdom 86 71 1 BAIC China
37 47 2 Mitsubishi Motors Japan 87 78 1 Royal Enfield India
38 31 1 Daihatsu Japan 88 88 0 Mack United States
39 41 2 GMC United States 89 - 3 MG China
40 43 2 Tata Motors United Kingdom 90 84 1 Yulon Taiwan
41 27 1 MAN Germany 91 80 1 Sokon China
42 45 2 Hino Japan 92 95 2 Lada Russia
43 36 1 Fiat Italy 93 91 1 WEY China
44 49 2 Yamaha Japan 94 97 2 Piaggio Italy
45 52 2 Lamborghini Italy 95 92 1 UD Trucks Japan
46 56 2 Rolls- Royce United Kingdom 96 89 1 Paccar United States
47 55 2 Opel Germany 97 93 1 FAW China
48 42 1 Harley-Davidson United States 98 100 2 Tofas Turkey
49 50 2 Bajaj Auto India 99 94 1 New Flyer Canada
50 62 2 RAM Trucks United States 100 - 3 Smart Germany
f 1
Every Automobile company will want to compare brand
Metric Top Sector
6.9
equity against immediate competitors and peers. But What do the high-performers do so well? There is
broader benchmarking against brands across a range Automotive /10 no one-size-fits-all formula, but the top brands are
of categories provides a more rounded assessment of generally seen as a symbol of success and forward-
brand strength. thinking, with excellent service quality. It needn’t be
d
In fact, technology innovations are disrupting traditional
automotive business models.
3 = Furthermore, innovation scores for automobiles are
6.6
above the market average and this could be due to the
Quality
Automobile companies have Apparel /10 transition to electric vehicles. For example, Porsche
maintained their reputation AUTO released their first electric vehicle, Porsche Taycan
C
which has a 250-mile range and rapid charging,
Automobile brands have the highest average reputation
3 = recently and this could be seen as a method by which
scores in our sector league table, showing that they
earn the respect of consumers. Automobile companies
are generally considered to have good reputations due
Restaurants 6.6 /10
Recommendation
(NPS)
automobile companies are helping to combat the issue
of global carbon emissions. Hence, making them a
more reputable brand.
b
to the reliability and quality of their products. Scores RESTAURANTS
are slightly lower than the previous year, and this may
5 Tech halo shining less brightly
be due to the recent movement towards sustainability
and the contribution of CO2 emissions by automobiles. Airlines 6.6 /10
Loyalty
Consumers continue to hold the tech sector in high
regard, even though reputation scores have fallen
D
Across the 29 markets covered by our research this slightly. In part, any decline may be because issues in
wave, automobile brands are regarded warmly by 6 TECH
the public spotlight are finally impacting the reputation
consumers, with reputation always well above the
market average. In line with this, intended loyalty is Retail 6.5 /10
of some industry giants. Reputation scores for
Facebook (6.3) and Uber (5.7) are all lower by 0.5
also above the market average among the sectors points, and Huawei (6.2) is under the global spotlight.
Innovation
t
researched. Nevertheless, brands such as YouTube (7.8), Google
7 TECH
(7.7), and Netflix (7.4) continue to enjoy strong
Automobile brands also have the highest quality
scores. As the purchase of vehicles are a long term Insurance 6.4 /10
reputations and buzz – most brands would love to be in
their position.
investment, consumers pay careful consideration to the
L 8
quality of their products. With quality and reputation Website/App Hence the automobile sector is clearly still vulnerable
being highly correlated, automobile firms have built to disruption – tech brands enjoy significantly higher
their brands on a history of producing high quality
products, which is a key driver of their reputation. Utilities 6.3 /10
TECH scores for loyalty and innovation.
H
10
(reputation score 8.8 out of 10), Toyota in Japan (8.5),
OVERALL
and Mercedes in Spain (8.4) are all well-regarded.
Most of the high-performers are global brands in
Europe (we normalise scores to reduce the impact of
Telecoms 6.0 /10
STAKEHOLDER
EQUITY
TECH
🇫🇷 🇫🇷
Top 5 Strongest Brands Top 10 Most Valuable Brands
1 0 1 1 01
🇯🇵 🇯🇵
2019: 86.3 AAA 2019: $7,232m
2 2 3 2 02
🇮🇹 🇩🇪
2019: 78.1 AA+ 2019: $6,955m
3 1 2 3 03
🇩🇪 🇺🇸
2019: 78.2 AA+ 2019: $3,408m
Michelin remains the world’s most valuable and Michelin continues to innovate 4 0 4 4 04
strongest tire brand with a brand value of US$7.1 billion 2020: 74.8 AA+ 2020: $2,126m
its products and market them -1.8% +5.7%
🇺🇸 🇺🇸
and a BSI score of 86.2 out of 100. 2019: 76.2 AA+ 2019: $2,011m
and its brand in consistent and
Michelin is by far the strongest brand in the tire
segment with an advantage of 9 BSI points over the
relevant ways. With so much 5 0 5 5 05
second strongest brand in the industry, Bridgestone history and appeal to play with, 2020: 74.7 AA+ -1.6% 2020: $2,083m +6.9%
🇮🇹
2019: 75.9 AA+ 2019: $1,948m
(up 1% to US$7.0 billion). Michelin is the thought leader it is not surprising they’re the
in the industry, its product diversification into puncture-
less tires with its Uptis prototype and association with
premium events and excellent performance, have
top in our table again. mainstream by 2024 and will help prevent maintenance
checks, damage inspections and rotations.
6 06
🇰🇷
2019: $1,620m
Director, Brand Finance LingLong tire brand value is now US$760 million and
7
Tire makers are on the hook to deliver something more they achieved a AA- brand rating, a 68 BSI score.
than durability, reliability and high performance. They 07
need to embark on the “connectivity” journey. A big LingLong managed to increase its overseas sales over
2020: $1,319m -9.8%
question now is, to what extent can the tire manufacturers the last few years driving company growth outside
🇯🇵
2019: $1,462m
leverage the 5G technology to create connected tires? mainland Mainland China and Hong Kong. Overseas
8
sales rose from 0.5% in 2014 to more than 25% today
Analysts expect the connected tire market to grow up to with increasing familiarity gained in key European 29
75% by 2030 with autonomous driving and car sharing markets thanks to sponsorship activities with Juventus,
2020: $873m +6.0%
contributing highly to demand for connected tires. a relationship that has been extended to 2022 and Vfl
🇨🇳
2019: $823m
Compared to this new concept of connected tires where tire Wolfsburg, where the brand became sleeve sponsor.
9
performance management will be at the core, the normal
tire industry is predicted to grow at circa 5% by 2027. Sponsorship strategies are not new to tire brands 3 NEW
🇯🇵
2019: -
as EV and autonomous driving is gaining traction. and especially in to football. To name a few, Pirelli,
10
Michelin is at the fore front of this transformation Yokohama, Hankook, LingLong, have been building
with their Uptis prototype, which is considered a key their awareness and familiarity with the public through 0 10
step toward the future of sustainable mobility. This sponsorship strategies in football. 2020: $756m
unique puncture-proof tire system is expected to be -5.5%
2019: $801m
20 Brand Finance Automotive Industry March 2020 brandfinance.com brandirectory.com/tyres Brand Finance Automotive Industry March 2020 21
Brand Finance Auto Components 10.
Brand Finance
Auto Components 10.
🇫🇷 🇯🇵
Top 5 Strongest Brands Top 10 Most Valuable Brands
1 2 2 1 01
🇰🇷 🇰🇷
2019: 65.3 AA- 2019: $4,076m
2 2 3 2 02
🇯🇵 🇨🇦
2019: 62.3 A+ 2019: $3,419m
3 2 5 3 03
🇨🇦 🇯🇵
2019: 60.9 A+ 2019: $2,535m
4 0 4 4 3 NEW
🇬🇧 🇫🇷
2019: 61.5 A+ 2019: -
5 2 7 5 14
🇫🇷
2019: 59.1 A 2019: $2,450m
Auto Components brands are in a phase of transition We are witnessing a shift to
brought about primarily by the electric vehicle (EV)
transition.
electric and hybrid engines European and US Markets are likely to decline again
6 27
across the sector which is this year due to greater tariffs and the impact of the
2020: $1,343m +1.6%
🇩🇪
2019: $1,322m
Backed by the tarnished reputation of diesel
upending the business models coronavirus.
7
and worries about the environment, automobile
manufacturers are increasingly restructuring of many of the major auto However, some brands have shown their forward- 16
themselves to produce many more EVs. The rising tech
costs and corporate change that this involves have
components brands. Denso, thinking and resilience and continue to grow in the face
2020: $1,238m -15.2%
of these challenges. Denso (up 2% to US$4.2 billion),
🇬🇧
driven down EBIT margins - EU automakers’ combined however, is showing that Magna (up 4% to US$2.6 billion and Toyota Industries
2019: $1,459m
🇮🇹
2019: $1,146m
as evidenced by the STOXX 600 Automobiles & Parts Auto Components brands. The brand has recently
industry is unlikely.
9
Index underperforming the wider market in 2019. begun to focus on partnerships such as with Aisin
This can be seen through the fall in brand value of Group in electric, hybrid and plug-in hybrid vehicles 3 NEW
Valeo, Schaeffler and Hella (a dropout this year). Alex Haigh and with Toyota for autonomous driving. Since 2018,
2020: $1,090m -
Technological innovations are disrupting traditional Director, Brand Finance the company has also focussed on a strategy of
🇨🇳
2019: -
automotive business models and in response “sustainable management” – balancing profit with the
10
automakers are introducing greater restructuring plans. wider social good of the functions it performs – and
investing heavily in R&D to meet new trends head-on. 0 10
In addition, global demand has fallen as China’s auto As a result, the brand has seen rising revenues in all 2020: $775m
sales were 11% lower in October year to date and key markets excluding Europe. +6.9%
2019: $725m
22 Brand Finance Automotive Industry March 2020 brandfinance.com brandirectory.com/auto Brand Finance Automotive Industry March 2020 23
Brand Finance Car Rental Services 10.
Brand Finance
Car Rental Services 10.
🇺🇸 🇺🇸
Top 5 Strongest Brands Top 10 Most Valuable Brands
1 0 1 1 01
🇺🇸 🇺🇸
2019: 79.1 AA+ 2019: $6,785m
2 0 2 2 02
🇺🇸 🇺🇸
2019: 71.7 AA 2019: $2,586m
3 0 3 3 03
🇺🇸 🇫🇷
2019: 68.6 AA- 2019: $1,746m
The car rental market is the most fragmented and Far from being a harbinger of
regional segment within the automotive industry.
However, unlike the other constituent parts of this
doom, new car-sharing apps 4 0 4 4 25
report, global trends seem to be moving in its favour. and environmental regulations 2020: 68.0 AA- -0.9% 2020: $1,003m +6.1%
🇫🇷 🇺🇸
2019: 68.6 AA- 2019: $946m
The market is expected a compound annual growth of
17% for the period 2020-2024, with the majority of the
have helped make fertile
growth coming from North America. ground for the growth of car
rental brands. Enterprise
5 2 9 5 14
Despite an initial fear that new car sharing brands 2020: 64.6 AA- +6.5% 2020: $976m -1.8%
🇩🇪
would erode the traditional car rental brands’ position, Group is certainly taking full 2019: 60.6 A+ 2019: $994m
car-sharing seems to, in reality, showcase the changing advantage of these trends.
nature of car ownership that is bringing benefits to the
existing brands. Alex Haigh
growth forecasts but whose effects have yet to clearly
materialise in brand value.
6 06
🇺🇸
2019: $943m
In many established markets car ownership is falling as US brands have been the biggest beneficiaries of these
7
cheap alternatives – like Uber and Lyft – become more trends this year. Enterprise group is growing fastest
available, public transport improves and environmental with three of its brands included in the table growing at 07
standards become more stringent. high rates:
2020: $812m +8.3%
🇿🇦
• Enterprise (retained 1st position, brand value 2019: $750m
Traditional car rental brands – whose business models US$7.4 billion, only AA+ rated brand in the
8
revolve around regular model-cycling and more industry.) Brand value growth YoY 9%.
unorthodox trips frequently not covered by public 3 NEW
• National Car Rental (retained 7th position, brand
transport – are therefore well set up to take advantage
value US$812 million, A+ rated brand): brand 2020: $798m -
of these trends.
🇺🇸
value growth YoY 8%. 2019: -
• Alamo rent a car (Moved from 8th to 9th, brand
9
The one trend which does look like a potential serious
threat to the brands’ business models is autonomous value US$746 million, only A+ rated brand): brand 18
driving. However, it is unlikely that there will be value growth YoY 16%.
2020: $746m +16.1%
widespread adoption of this type of technology for However, some brands are struggling. Avis’ brand
🇨🇳
2019: $643m
some years given technological and regulatory issues value dropped 9% this year to US$1.6 billion as the
10
that are yet to be overcome. company is struggling to keep up with other players,
such as Hertz (up 1% to US$2.6 billion), in terms 3 NEW
Shorter term concerns are lower demand in Europe of technological investments and fleet management 2020: $592m
and the new shadow of the Coronavirus which could hit system upgrade. -
2019: -
24 Brand Finance Automotive Industry March 2020 brandfinance.com brandirectory.com/car-rental-services Brand Finance Automotive Industry March 2020 25
Definitions.
Definitions.
Brand Value Brand Strength
+ Enterprise Value Brand Strength is the efficacy of a brand’s Each brand is assigned a Brand Strength Index
The value of the entire enterprise, made performance on intangible measures, relative (BSI) score out of 100, which feeds into the brand
[Volkwagen Group] up of multiple branded businesses. to its competitors. value calculation. Based on the score, each brand
is assigned a corresponding rating up to AAA+ in a
Where a company has a purely mono-
Enterpr In order to determine the strength of a brand, we look format similar to a credit rating.
ise branded architecture, the ‘enterprise value’
Val is the same as ‘branded business value’. at Marketing Investment, Stakeholder Equity, and the
ue
impact of those on Business Performance. Analysing the three brand strength measures helps
+ Branded Business Value inform managers of a brand’s potential for future success.
Brand
ed B The value of a single branded business
us operating under the subject brand.
ine [Bentley]
ss
V A brand should be viewed in the context Marketing Widely recognised factors deployed by marketers to create brand loyalty
between marketing investment, brand- Stakeholder Perceptions of the brand among different stakeholder groups,
n
tracking data, and stakeholder behaviour. Equity with customers being the most important.
+ Brand Contribution
Brand The overall uplift in shareholder value
Quantitative market and financial measures representing the success
that the business derives from owning Business
Value [Bentley]
the brand rather than operating Performance of the brand in achieving price and volume premium.
a generic brand.
Disclaimer Loyalty
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information
and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available Intention to repeat purchase
information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the report are not to be construed as providing investment or business advice.
Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation.
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