Published: February 22, 2024 12:06 pm
Author: RT
Mercedes-Benz has regained the top position, with its brand value reaching almost $60 billion, according to a consultancy
German carmaker Mercedes-Benz has overtaken the US rival Tesla to regain its position as the world’s most valuable auto brand, according to a new report by consultancy Brand Finance. It had surrendered the top position to the Elon Musk-led company in 2023.
The 2024 automotive industry report found that Mercedes-Benz has maintained its premium status and enhanced its operational and financial metrics. The company’s strategy of focusing particularly on high-end passenger cars and premium vans has been instrumental in driving revenue growth. This is particularly important as the German auto giant faces a significant challenge from Chinese electric car brands, the publication said.
“The challenge ahead will be to navigate limited growth expectations, leveraging its strong brand and premium pricing to sustain its market leadership in a competitive landscape,” said Alex Haigh, managing director of Brand Finance Asia Pacific.
Meanwhile, the brand valuation of US electric vehicle maker Tesla decreased 12% to $58.3 billion in the latest report, dropping the company back into second place. Brand Finance researchers identified a moderate decrease in reputation, most likely linked to the controversial actions of CEO Elon Musk, which have had a negative impact on the brand’s image. Additionally, Tesla’s exposure to the Chinese market and the associated smaller long-term growth rate have also adversely affected revenue projections.
“The decline in Tesla’s brand value is made all the more compelling against the backdrop of an automotive industry increasingly focused on electric vehicles, however, Tesla’s brand strength persists, a sign that the company’s core identity is resilient,” stated Haigh.
READ MORE: Chinese car giant passes Tesla as world’s top EV producer
The report said that the Chinese auto sector, which is “entering a new era,” has continued to grow, fueled by strong global interest in electric vehicles, which is driving investments and exports. BYD is currently China’s most valuable auto brand, with its brand value increasing by 20% to $12.1 billion. The Brand Finance report revealed that 19 out of the 22 Chinese brands featured in the 2024 Brand Finance Automobiles ranking improved in brand strength.
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