Mercedes has been ranked as the top global auto brand, according to the latest report from Brand Finance, a leading independent brand valuation and strategy consultancy.
The German car maker’s brand value increased by 26 per cent from last year, emphasizing Germany’s domination of the auto industry with all its brands featuring in the top 10 of the world’s most valuable auto brands.
Volkswagen (brand value up four per cent);BMW (down three per cent), Porsche (up 54 per cent); and Audi (up 31 per cent ).
Volkswagen’s portfolio of brands is the most potent in the market and combines a diverse set, including: Skoda, Porsche, Audi and Volkswagen.
Skoda and Porsche both feature as brands with the highest brand value increase over the past year, with the former rising by 68 per cent and the latter by 54 per cent.
Porsche has benefitted from the rise in popularity of SUVs and China’s growing appetite for high-performance sports cars, which is the second biggest market for luxury cars after the US.
German brands have managed to fend off the challenge from both Japan and China, with quality and reliability prevailing over an industry that is in the process of sweeping diversification.
Alex Haigh, Director, Brand Finance commented: “There is no denying the dominance of German auto brands amongst the world’s 10 most valuable this year. The combination of their trusted and long-standing heritage, a commitment to diversification, innovation and after sales-services really sets these German brands apart from the rest.”
The rise of electric vehicles is impacting the shape of the market the most, with Chinese brands benefitting from its government’s recent policy which encourages such production via tax incentives.
However, there is no representation from Chinese brands in the top 10 of this year’s Brand Finance Auto 100 2019.
Similarly, Elon Musk’s Tesla (up 31 per cent), still has ground to make up.
There are concerns about Tesla’s ability to achieve production scale, its financial health and around the behaviour of its space obsessed CEO.
Full Brand Finance Auto 100 2019 report can be viewed here.