According to the 2019 BrandZ Top 100 Most Valuable Global Brands list, Toyota has retained its position as the world’s most valuable car brand for 7th consecutive year.
The Japanese carmaker had a brand value amounting to USD29.151 billion in 2019, although there is a 3% decline from its value recorded in 2018. Similarly, Mercedes-Benz, which came in second place, saw a 9% drop in its brand value to USD23.355 billion.
Mercedes-Benz was closely followed by BMW, the brand value of which stood at USD23.326 billion (-9% from 2018). Meanwhile, Honda (USD11.749 billion), Ford (USD11.211 billion) and Nissan (USD10,554) were in close proximity to secure the fourth, fifth and sixth positions respectively.
Further down the list, Tesla secured the seventh spot (USD9.285 billion), followed by Audi (USD8.556 billion) and Volkswagen (USD6.707 billion). A new addition to the list is Porsche, which rounds up the top 10 with a brand value of USD5.817 billion. Overall, the brand value of the car category saw -7% year-on-year change, with a total brand value of USD139.7 billion.
Related: 2018- Best Selling Cars of the World
The top 10 list mentioned above is specific to the automobiles category. However, when compared to other non-automotive brands on the complete 100-brand list, only Toyota, Mercedes-Benz and Honda were present.
To qualify to be included in Interbrand’s Best Global Brands list, a company must meet several conditions where at least 30% of its revenue must come from outside of its home region. Furthermore, the brand must have a significant presence in Asia, Europe, and North America as well as broad geographic coverage in emerging markets.
The BrandZ valuation process involves calculating and combining two important elements– financial value and brand contribution. The financial value is determined by the proportion of the total dollar value of the parent company that can be attributed to the brand in question, considering both current and projected performance.
From there, brand contribution quantifies the proportion of this financial value that is directly driven by a brand’s equity. This is the ability of the brand to deliver value to the company by enticing consumers to choose the brand over others or pay more for it, based purely on perception, without price promotions or prominent displays.