Honda led the charge for Japanese brands, growing its brand value by 6%, compared to a less positive year for Toyota and Nissan, declining their brand values by 5% and 4% respectively.
Only the top four car brands achieved a brand value high enough to be ranked in the Top 100 Global Brands, with Tesla’s meteoric rise positioning it at #47 in the index.
The Kantar BrandZ Most Valuable Global Brands 2021: Automotive Sector
Rank 2021 | Rank Change | Brand | Country of Origin | Brand value 2021 ($MN) | Brand value 2020 ($MN) | Brand Value Change |
1 | +3 | Tesla | US | 42,606 | 11,350 | +275% |
2 | -1 | Toyota | Japan | 26,974 | 28,388 | -5% |
3 | -1 | Mercedes-Benz | Germany | 25,835 | 21,349 | +21% |
4 | -1 | BMW | Germany | 24,821 | 20,517 | +21% |
5 | +1 | Honda | Japan | 10,570 | 9,974 | +6% |
6 | -1 | Ford | US | 10,444 | 10,067 | +4% |
7 | +1 | Audi | Germany | 8,931 | 7,334 | +22% |
8 | -1 | Nissan | Japan | 8,317 | 8,658 | -4% |
9 | 0 | Volkswagen | Germany | 7,059 | 6,462 | +9% |
10 | 0 | Porsche | Germany | 6,858 | 5,606 | +22% |
Automakers lagging on environmental responsibility
Tesla’s position may be as the poster child for environmental responsibility, but the automotive industry is falling behind compared to other industries. While all brands are trending upwards from 2020 in terms of perceptions of being environmentally responsible, they are still perceived as being behind when compared to other companies ranked in Kantar BrandZ Most Valuable Brands ranking.
To catch up with Tesla, brands like Toyota must communicate more emphatically about their environmental credentials and leverage this with a broader point of difference. Our Issues Radar research shows us that the automotive industry’s environmental performance dominates the social conversation around sustainability, telling us there is a willing audience to hear how these brands reshape their industry.
Fresh marketing is required to broaden consumer appeal
The results in this year’s ranking show that brands need to meaningfully engage with their audience to drive business. Even Tesla, with the largest stock valuation ahead of Toyota and the most valuable automotive brand in the ranking, has the opportunity to meet the needs of more consumers by becoming more meaningful.
Car brands have traditionally used marketing to position themselves as desirable, contemporary, and adventurous. Failing to communicate open, honest, and fair brand values may inhibit future growth as consumers increasingly align with brands that show their commitment to ethical and social practices.
This year’s results show that high growth brands have a stronger reputation, especially for sustainable and ethical purposes. For automotive makers, the results suggest that leveraging environmental responsibility with a meaningful difference is the winning formula for future growth in this sector.