Mercedes-Benz is valued at $43.9 billion ahead of last year’s topper Toyota with $43.7 billion and BMW with $41.8 billion
Mercedes-Benz has been named as the most valuable automotive brand in the world based on a report published by Brand Finance. The independent branded business valuation consultancy has positioned the German luxury manufacturer on top of the charts with a value of $43.9 billion. It is at an increase of 24 percent compared to last year.
The major factor behind this value progression is due to the jump in car sales of Mercedes by 9.9 percent. With 2.3 million vehicles, Mercedes-Benz has been positioned ahead of Toyota. As much as the confusion the valuation brings, Toyota and Mercedes-Benz swapped places in comparison on the previous term. The former dropped to a value of $43.7 billion.
Behind Toyota, in third position, is BMW with a 6 percent rise to $41.8 billion in market valuation. Brand Finance has stated that buyers have shifted their attention from Toyota vehicles in favour of luxury brands such as Mercedes-Benz and BMW in Japan.
Brand Finance’s chief executive David Haigh said that the success of Mercedes-Benz can be attributed to the introduction of its new generation models as its renewed its focus and ventured into now-popular segments like SUVs and crossovers. Another major contribution goes to the evolved technologies every year.
Volkswagen ($33.7 billion) sits at number 4 ahead of Honda ($22.1 billion), Nissan ($19.4 billion), Porsche ($19.1 billion), Ford ($17.3 billion), Audi ($15 billion) and Chevrolet ($12.8 billion) wrapping up the top 10. Considering all the brands, Aston Martin stood apart from the rest with its valuation catapulted by 268 percent when compared between 2017 and 2018.
The significant automakers that enjoyed huge leaps in valuation are Tesla by 106 percent, Jaguar by 105 percent, Smart by 103 percent, Haval by 124 percent and BYD by 211 percent. Brand Finance uses Royalty Relief approach method for valuation and each company’s strength is expressed as Brand Strength Index (BSI) on a scale of 0 to 100.
The method involves estimating the likely future revenues and arriving at a net economic benefit that a licensor would achieve by licensing the brand in the open market.