Tesla the world’s fastest-growing car brand

Tesla is the fastest-growing car brand, rising 32% to US$5.9 billion (NZS$8.2b) in the 2017 BrandZ Top 100 Most Valuable Global Brands ranking.

Released by WPP and Kantar Millward Brown, the rankings’ sharp increase reflects the success of the car’s positioning as an “innovative but stylish luxury brand offering the performance of a high octane, carbon-burning engine without the guilt”.

Toyota remains the most valuable global car brand. The company saw a -3% fall in brand value to US$28.7 billion (NZ$39.89b) with increased sales offset by tough currency challenges as well as increased investment and rising labour costs.

BMW (US$24.6b or NZ$34b) and Mercedes-Benz (US$23.5b or NZ$32.6b) complete the top three, with Ford moving up one place to fourth with a brand value of US$13.1bn (NZ$18.2b).

After a successful sales year, the total brand value of the top 10 car brands has remained level at US$139.2b (NZ$193.5b). This compares with a -3% fall last year. Innovation has been a strong theme for many brands this year as they seek to develop solutions to challenges, including new forms of ownership and greater connectivity of their vehicles.

The level performance for the sector reflects the fact that while sales grew in key markets – both China and US reported record sales – the discounts required to be competitive squeezed margins among mainstream brands.
By contrast, luxury brands avoided the squeeze and these car brands now make up 52% of the top 10 car brands by brand value, compared to 36% when the BrandZ Top 100 was launched in 2006.

Mercedes-Benz, up 4%, was the best performer among the top seven places, while there was more significant movement at the lower end of the top 10.

In addition to Tesla’s success, Land Rover (ninth) and Porsche (tenth) also grew strongly, growing +17% and +16% to US$5.5b (NZ$7.6b) and US$5.1b (NZ$7b) respectively. The former has taken advantage of growing demand for SUVs while the latter has built its popularity in key Asia markets such as Taiwan, Singapore, Malaysia, Thailand and the Philippines.

“The car business is an industry anticipating rapid change and many brands are already taking steps to prepare for new sales channels, changing forms of ownership and the arrival of more connected and autonomous cars,” Kantar Millward Brown Global BrandZ strategy director Peter Walshe says.

“The financial pressures to deliver current sales while also investing and anticipating the future are placing established brands under great pressure and creating space for newcomers like Tesla to power ahead. Strong brands will not only help car groups boost existing revenues but encourage consumers to stick with them as the vehicle they drive changes fundamentally.”

The major car brands are also experimenting with new mobility solutions for when consumers desire access rather than ownership. Mercedes has launched an Airbnb-type network that enables members to rent their Mercedes. Audi is testing a rental programme called Audi on Demand. Members choose the Audi model that matches the occasion – shopping, going to dinner or just wanting to drive around – and a concierge delivers and picks up the vehicle.
Ford purchased US ride share shuttle service Chariot. In Amsterdam, car share service companies are picking up people in Tesla cars.

BrandZ combines interviews with over three million consumers globally with analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel).