Top 10 ranking
shifts to luxury
Over the past 12 years, the brand value of the BrandZ™ Cars Top 10 declined 6 percent. The brands struggled with declining demand coming out of the recession. Margins weakened because of extensive price discounting to drive volume. During this period, the composition of the BrandZ™ Cars Top 10 shifted substantially.
Six brands remain consistent, but the four newcomers all are luxury brands: Audi, Tesla, Land Rover, and Porsche. In 2017, luxury brands comprise over half the brands in the ranking, compared with just over a third in 2006.
But differentiation flattened, as the luxury brands added more popularly priced models and the mass brands added more technology and other luxury features. Consumers view both luxury and mass brands as average in Creativity. Consumers continue to see luxury brands as much sexier than mass brands, however.
The most differentiated brand is Tesla, which increased 32 percent year-on-year in value, while the car category remained unchanged. A disruptive brand that entered the BrandZ™ Cars Top 10 for the first time a year ago, Tesla far outscores both luxury and mass brands on Brand Purpose, Innovation, and being Creative.
Tesla illustrates how the power of clear Brand Purpose drives brand value. Two other brands that recorded this kind of excitement prior to entering the mass market were Apple and Facebook, according to BrandZ™ research. Tesla mostly threatens the luxury brands, but it potentially impacts mass as it introduces more popularly-priced models. The mass brands need to better differentiate and communicate their Brand Purpose, and the steps they are taking to keep up to date and improve people’s lives.
Brand value proportion shifts to luxury…
During the past 12 years, the composition of the BrandZ™ Cars Top 10 shifted substantially.
In 2017, luxury brands comprise over half the brands in the ranking, compared with just over a third in 2006.
… And Tesla scores higher than luxury in key metrics
The most differentiated brand is Tesla, which increased 32 percent in value year-on-year, while the category stayed flat.
NB: Luxury cars (Audi, BMW, Land Rover, Mercedes, Porsche) combined had a flat change from previous year, BV 2017: 68140 MN $, BV 2016: 68212 MN $, negative change of -0.1% to be precise. It is mentioned +1% growth, should be corrected.