Toyota remains the most valuable global car brand in the 2016 BrandZ™ Top 100 Most Valuable Global Brands ranking, released today by WPP
and Millward Brown
. The company saw a 2% rise in value to $29.5bn, having worked hard over the last year to combine technology leadership with a business strategy that appeals to its broad target market.
BMW ($26.8bn), Mercedes-Benz ($22.7bn), Honda ($13.2bn) and Ford ($13.1bn) have also retained their 2015 positions to round out the Top 5. The total brand value of the Top 10 car brands has fallen by 3% to $139.9bn, reflecting new competition, the huge potential for disruption, and a decline in trust thanks to the ongoing emissions crisis.
One sign of the coming disruption is the arrival of premium electric car brand Tesla in the top 10, with a brand value of $4.4bn, just a month after entering the mainstream car market with its more affordable $35,000 Tesla 3.
Other powerful changes in this sector include the switch from ownership to an access to mobility model. The rise of Uber (and its Chinese rival Didikiaidi) and new finance deals, which encourage consumers to assess their brand choice based on the monthly cost, are repositioning the car business from an ownership model to an ‘access to mobility’ equation.
Car manufacturers such as Ford and Audi also have new car sharing models with more flexible access to models as consumers move through different life stages or transport needs.
“The car business is facing perhaps the most challenging period since the arrival of the internal combustion engine, with the emissions crisis just one of many issues that it will have to navigate,” commented Peter Walshe, Global BrandZ Director at Millward Brown. “Those car groups with strong brands will be best placed to pivot both their business model and their engineering as the move to electric only and potentially driverless cars changes consumer perceptions of what it means to drive. The arrival of Tesla in the top 10 for the first time shows how much change is on the horizon. A strong brand will give established groups more time to make the fundamental changes they may need to make.”The BrandZ Top 10 Most Valuable Car Brands 2016
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Other strong performers in the sector include Porsche, which entered the top 10 for the first time and is now valued at $4.4bn, while the best riser was Mercedes-Benz, which recorded a 4% rise to $22.7bn in what has been tough year for the sector as a whole.