Tesla has become the world’s most valuable automotive brand, according to a new report from brand valuation consultancy Brand Finance. With a brand value surging by 44% to $66.2 billion, this makes it the world’s most valuable Automobile brand for the first time, marking the first time that a brand that does not manufacture internal combustion engines has topped the global rankings.
Every year, Brand Finance puts 5000 of the biggest brands to the test and publishes over 100 reports, ranking brands across all sectors and countries. In addition to the most valuable Automobile brand, the consultancy’s Brand Finance Automotive Industry 2023 report ranks the fastest-growing, strongest, and highest sustainability perceptions score for Automobile and Auto Component brands, and the most valuable and highest sustainability perceptions scores for Mobility brands.
The Tesla brand is now worth more than five times its pre-pandemic value, overtaking last year’s leader, Mercedes-Benz, with brand value down 3% to $58.8 billion, and last year’s runner-up, Toyota, with brand value down 18% to $52.5 billion.
“This growth in brand value is a positive sign for Tesla as it indicates that consumers are recognizing and valuing the brand more, which could potentially lead to increased sales and revenue in the future,” said Alex Haigh, Valuation Director of Brand Finance. “The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand.”
Sokon is the fastest-growing Automobile brand, up 123%. The Chinese brand’s value more than doubled to $739 million after a successful 2022 in which it sold 21% more vehicles year-on-year. The brand’s forecasts have also increased, helping further boost brand value.
Ferrari is the strongest Automobile brand, earning an elite AAA+ rating. In addition to calculating brand value, Brand Finance also determines the relative strength of brands using a range of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Though its brand value is down 8% to $7.4 billion, Ferrari has a Brand Strength Index score of 90.7. It had a strong financial performance in 2022, but its brand value reduction was caused by adverse foreign exchange movements and concerns about future financing requirements.
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. The consultancy assesses this by a Sustainability Perceptions Score and Sustainability Perceptions Value calculated for each brand.
Tesla has the highest Sustainability Perception Score, at 5.43 out of 10, and a Value of $17.8 billion. The brand is well known as a pioneer of the EVs and battery technology that is aiding the transition to a lower carbon economy, an image that has clearly carried across into the perceptions held by global consumers, according to researchers.
On the supplier front, Japanese brand Denso retains its title as the world’s most valuable Auto Component brand for the 6th consecutive year, with a brand value up 6% to $4.5 billion. Researchers say that the supplier has invested heavily in electrification as it looks towards a more electric automotive industry future.
Aptiv is the fastest-growing brand in the Auto Component ranking, with a brand value up 30% to $1.6 billion. In addition to recent acquisitions of Wind River Systems and Intercable Automotive, the brand saw revenues increase in 2022 after a second year of record new business bookings. French brand Valeo, with a brand value up 1% to $2.3 billion, has the strongest Automotive Component Brand Strength Index score of 69 out of 100, with a AA- rating.
There was no movement in the top three rankings of the world’s most valuable Tire brand in 2023. Michelin remained in the top spot for the 6th consecutive year with a brand value up 2% to $7.9 billion. It is followed by Bridgestone in second place, with a brand value down 1% to $7 billion, and Continental in third with a brand value down 3% to $4.1 billion.
In addition to being the most valuable Tire brand, Michelin is also the strongest, with a Brand Strength Index score of 88.1 out of 100 and a corresponding AAA rating. It also has the highest Sustainability Perception Value of any Tire brand in the ranking at $255 million. The brand’s high brand equity has partly enabled it to remain resilient to difficult macroeconomic challenges.
Chinese brand Sailun is the fastest-growing Tire brand, with a value up 6% to $7 million. In 2022, it released its EcoPoint³ tires, a more sustainable and affordable solution to car manufacturers after ten years of development, which created widespread media coverage within the industry and contributed to its brand value growth.
The most valuable Mobility brand in 2023 is Uber, up 2% year-on-year to $23.3 billion. The brand’s dominance in the sector is highlighted by a brand value that is more than three times the value of the second most valuable Mobility brand, Enterprise, with a brand value up 9% to $7.7 billion.
As well as being the most valuable Mobility brand, Uber also has the highest Sustainability Perception Value in the ranking at $2.4 billion. Enterprise is the strongest Mobility brand, with a Brand Strength Index score of 76.7 out of 100 and a corresponding AA+ brand rating.